Iraqi: Saving money in homes safer from banks

Iraqi: Saving money in homes safer from banks

By Wab1 -

February 18, 2016 

BAGHDAD / Luxury just ...

Put Abu Malik, a merchant electric devices in central Baghdad, most of his money in his house, and the house of one of his sisters, after the withdrawal of which about 85% of the bank, and kept 15% of them, for fear of manipulation or loss under the stifling Iraq's financial crisis, and caused by the decline in oil prices in global markets, and the policy of austerity adopted by the Iraqi government.

This comes in conjunction with a modern street, and the statements of government officials and experts of finance and economy of the potential scarcity of Iraqi currency, and the bankruptcy of the country during the next few months, which called for most of the owners of the money, and even the staff to save money in their homes, especially after the Iraqis who lived a bitter experience in years the economic embargo imposed by the UN Security Council in the wake of Iraq's invasion of Kuwait in 1991, and continued until 2003.

He says Abu Malik News Agency Baghdad International / WAP / The "Mtzbz market, the demand for electrical appliances is very weak, people are reluctant to buy these devices and is interested in eating and clothing, to provide money to the requirements of other life, which called for most traders to deal cautiously with the market situation , and save money, convert goods into cash. "

He added that "all Almahra confirms that Iraq is on the verge of bankruptcy because of its reliance primarily on oil and foremost, and borrowed from international banks, raise taxes and fees, and this is cause for concern in conjunction with government officials statements that lead to frustration about the scarcity of prospective cash and the effects of which appeared on the movement of trade in all of Iraq. "

The Finance Minister Hoshiyar Zebari, has said earlier that the government may not be able to pay its employees with the holy month of April / April next, due to the oil crisis and the depletion of state resources by the war.

The absence of laws

He says civil rights activist Said Yassin's / WAP / "The lack of confidence of traders and money and even those with limited income, the banking system, resulting from the absence of a law to protect the funds deposited in the banks."

Yassin added that "these concerns is not the result of the day, nor the result of the current circumstances, because of the absence of the protection funds law, especially that Iraq passed a lot of wars, as well as economic blockade, and all these factors have led to these fears and lack of trust between the customer and the bank."

He pointed out that "these concerns are part of the character of the Iraqi individual, where I grew up under the dictatorship (1968, 2003), because of the slogans that was launched by the former regime, including (everything in order to battle) and (Arab oil for the Arabs), with outbreaks corruption in the banking and financial sector in general. "

In the eyes of an economic analyst and financial expert Laith Mohammad Reza, said that "there are measures that could be adopted to encourage citizens to deposit their money in banks to contribute to the movement of the economy through the activated part of the overall liquidity," adding that "the money in store citizens in their homes is estimated at 25 billion dollar. "

He said Mohammad Reza's / WAP / "Raising the interest rate on the deposit money in banks, it can be of the most important measures to encourage citizens to deposit", calling for the launch of a national campaign to raise awareness of the importance of the work of banks and privileges provided to its customers. "

Mohammad Reza said that "on the central bank to monitor the work of banks and the extent to fulfill their obligations with customers and be the guarantor of the depositors' money, and declares it to reassure the people and enhance the work of the banks."

And Iraq has reserves of more than 60% over the past two years, as it dropped from $ 88 billion in November 2013 to $ 35 billion currently, according to the Iraqi Central Bank statistics.

The central bank recently announced its intention to issue an international bond two billion dollars during the current year 2016, while Baghdad intensify steps to borrow from international institutions to meet the fiscal deficit of the country's oil-rich.

The governor of the bank on the Keywords that "the World Bank will guarantee up to one billion dollars of the total value of the bonds to be issued, predicting that the yield on the new bonds will be" significantly lower "than the return."

Drag and currency exchange

He sees brokerage for buying and selling currencies owners (shops, banking) that there is a clear demand to buy the local currency, and replaced the US dollar or the euro, due to fears of scarcity of local currency.

Said Mazen Mohammed (owner of a money exchange) west of Baghdad, that "the people's fears are legitimate, due to the financial crisis experienced by Iraq, and most of them are turning their money from the foreign currency into local currency, and even the staff, they do not know Matboh the coming months."

Self-made banker Ahmad stressed that "the majority of depositors withdrew their money and deposits from banks,

for fear of seizure by the state if they exacerbated the crisis."

He pointed out that the self-made, "the US dollar equivalent of about 1150 Iraqi dinars."

And it announced several Iraqi civil bankrupt banks, due to rig some customers money through real estate trade, as investors raised concerns about their money.

The CBI had earlier announced its commitment to provide financial liquidity to domestic banks, which declared bankruptcy because of the acute shortage of foreign and national have currency, but the approach of government banks from bankruptcy is the other makes it more complicated.

The number of the Iraqi government banks Six banks are Rafidain, Rasheed , Socialist, and the bank's real estate and the agricultural Bank and the industrial Bank, while nearly 20 Iraqi banks, non-governmental highlighted that the Middle East, investment banks and Baghdad.

Similar concerns

It warns observers and economic experts in Iraq, the risk of the development of the dinar and its value due to the current financial crisis, which hit the country as a result of the decline in global oil prices, which directly influenced the decrease in Iraq's revenues of hard currency by as much as 70% higher than the past six years.

Accompanied by security challenges and fears of a collapse of the situation in the capital Baghdad and the expansion of crime and gang robbery and armed robbery, as well as the spread of professional networks to juggle some categories of the Iraqi currency, pushing it all to start reeling the Iraqi dinar and the decline of its value against the dollar, which portends a difficult year for Iraqis. /is over.