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Neno's Place Established in 2006 as a Community of Reality


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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    “Debt in debt” contributes to the failure of the banking sector to attract hoarded funds

    Rocky
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    • Post n°1

    “Debt in debt” contributes to the failure of the banking sector to attract hoarded funds Empty “Debt in debt” contributes to the failure of the banking sector to attract hoarded funds

    Post by Rocky Sat 21 Oct 2023, 10:21 am

    [size=45][size=41]“Debt in debt” contributes to the failure of the banking sector to attract hoarded funds[/size]

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    As a result of the Iraqi banking sector's failure to attract money hoarded inside homes, and in light of the state's need for the Iraqi dinar, the Central Bank decided to raise the interest rate for amounts deposited in banks to 7.5% to encourage citizens to deposit their money in banks. To withdraw the cash mass from the banks, in addition to issuing bank bonds with an interest rate of 6%, paid every 6 months, to achieve the same goal.
    In this regard, economic expert Alaa Globe stressed that “withdrawing money hoarded in homes first requires strengthening trust between the citizen and the government and motivating him to deposit money.”
    Globe added in a press interview seen by “Taqaddam” that “enhancing confidence in the Iraqi dinar contributes to reducing dependence on the dollar, and this is part of the process of withdrawing the request,” noting that “facilitating banking procedures also contributes to encouraging citizens to make deposits.”
    He pointed out that “80% of cash is hoarded in homes, and this is considered a negative situation for the Iraqi economy and its banking sector,” calling for “central reforms that enhance citizen confidence in the state and its institutions.”
    Alaa Al-Amiri, the owner of an exchange office, has another opinion and believes that the reason behind the hoarding of money in homes is that many citizens resort to dealing with usury, or what is popularly called “debt on credit.”
     
    Al-Amiri stated in a press interview seen by “Taqaddam” that “money is invested in this field and achieves huge profits that exceed the profits of depositing it in banks,” noting that “many citizens deposit their money with exchange offices or those who practice this profession in exchange for an interest amounting to more than From 250 thousand dinars per month for every million dinars.”
    He pointed out that “this process, despite the risks and social problems it carries, citizens prefer it to depositing their money in banks,” explaining that “this is the real reason for the banking sector’s inability to withdraw hoarded funds.”
    Debt, known locally as Fayez, is the process of citizens resorting to borrowing from those who have money, on the condition that the amount be repaid in the form of payments and on specific dates and in exchange for high interest that increases the longer the payment is delayed, which causes the amount to double, and thus the borrower is unable to fulfill it.
    Funds outside the Iraqi banking sector are estimated at approximately 70 trillion dinars.
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