Of the three sectors of a country’s monetary system; stock exchange, foreign exchange and government bond sales, the debt sales or the bond market is the benchmark from which all important indexes derive their foundation.
The new bond sale, slated to open on July 18th, is offering 91 day bonds. These sales will begin the process of establishing external value of the new Dinar and began developing a track record for the creditworthiness of the new government.
The goal of government bond sales is to issue 20 to 30 year bonds which will promote stability for the new currency. This initial bond sale will generate investor interest and serve as a watermark for future longer term bond sales.
Most important private commercial banks in Iraq are expected to participate in the bond sale which will give these newly established banks a revenue source as well as set a foundation for the next round of bonds.