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The rupee had, on Thursday, slumped to its all time low of 65.56 intraday against the dollar.
India-Iraq bilateral trade currently stands at around $21 billion.
This is the biggest ever auction for such bonds and exceeds the previous record of over $7.15 billion auctioned in June.
Indo-US trade has increased five-fold to touch $100 billion in last 13 years.
Chinese and Indian officials also shared concerns over the “outlook for Afghanistan in 2014 and beyond”.
The Finance Minister urged people on Friday “not to spread panic” about the Indian economy.
The ministry said that the current FDI policy needs to be changed to ensure affordable drugs for Indians.
Talks were held in the backdrop of an imminent NATO pullout from Afghanistan.
Singh was addressing the nation on India's 67th Independence Day.
The rupee has fallen around 12 per cent against the dollar since May.
