Iraq Expects to Step up T-bill Activity in 2010

Iraq expects to step up its Treasury bill activity in 2010 to help plug continuing budget deficits and foster a secondary treasury market, the Central Bank and Finance Ministry said in a submission to the IMF.

Iraq, only just emerging from sectarian war but still battling a stubborn insurgency, also wants to develop foreign exchange markets outside the framework of dollar auctions currently conducted by the Central Bank.

That included the establishment of an interbank foreign exchange market and dinar forward market, the submission said.

The country’s letter of intent submitted to the International Monetary Fund for a $3.6 billion standby arrangement was dated Feb. 8 and can be accessed here

Iraq, which on Sunday held its second election for a full-term parliament since the 2003 U.S.-led invasion, said it would not return to a budget surplus until 2012.

(Newsweek, Inc)

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