Then what is the appropriate level of the interest rate on bonds and the premium? Who should be the decision maker? The answer is the market. Therefore, relevant authorities should not set the interest rate or premium. We all know that there should be a lead underwriter to issue bonds, and it can be a commercial bank or a securities company.
An internationally accepted indicator is the current account balance to GDP ratio. For example, the current account norm is the core concept in the macroeconomic balance (MB) approach, which is used by the IMF to assess member country’s exchange rate.