Iraqi citizens do not trust banks and private Ictnz his money in his home

Iraqi citizens do not trust banks and private Ictnz his money in his home

August 16, 2016

Mohammad Rahim night / Baghdad

Governor of the Central Bank on the Keywords detect the phenomenon of financial compactness outside the banking system, where he said that "there is a serious phenomenon , a phenomenon compactness and also between us previously that 77% of currency in circulation is outside the framework of the system of the banking system which in the case of hoarding, in order to employ these resources and push toward savings and towards the banking sector , we need a great effort and widely at all levels. "

as Dr. Raed Fahmi said the Iraqi Institute for economic reform" to secure and mobilize internal resources in very important savings issue, this is a risk of a large concern that 77% of the funds are in the case of hoarding , "

and pointed out that" the state of compactness lead the banking sector and attract deposits and achieve the required confidence is not available, and today this is a big challenge because it is not only financial and administrative challenge , but harming the economic reality and the security reality and political reality, but we are talking about the role of banks and strengthen citizen 's confidence that deposited money in the banks. "

as director general of the financial and debt management operations in the Iraqi Central Bank , Dr. Mahmoud Dagher said for the night , " the subject of non - citizen 's confidence in banks facing all underdeveloped countries, including Iraq, where private banks originated in the circumstance is stable, in spite of everything been modifications and improvements but banks are still not able to confrontation, and we are still seeing the dominance of the three government banks on most bank deposits, assets and so it 's creating a dilemma for private banks in order to play its role. "

he pointed out that" the irregularities banks to the instructions of the Central Bank , particularly in operations sell the dollar, we have entered the free market and its conditions of supply and demand and the problem is that there is high demand for the dollar because of the instability can not be restrained , and previously was the Central Bank before the 2014 covers all the quantitative and now we do not cover the required quantity by the importers or who have assets or foreign remittances that pressure, and the economy is rarely witnessed great moral positions and we are between this and that the remaining 10 points or 6 points in a matter of economic risk unacceptable. "

while stressing Emad Majid blessing prime contractors Maysan pool" that the lack of confidence of citizens in banks behind it are many reasons, such as lack the Iraqi government keeping its commitments to the private sector,especially entitlements contractors and farmers that are not paid by the government despite the passage of many years at the time of maturity, in addition to the lack of liquidity in the banks, especially civil ones, when when reviewing the citizen to withdraw his funds shocking inability of the bank on fulfillment of entitlements customers. "

he revealed Majid in an interview for the night , " said the Iraqi citizen once deposit his money in dollars in his bank account and back to pull it lost nearly 5% of its funds because of the exchange rate differential and the great suffering and the Central Bank of the civil and government banks control to install and put the roof a fixed amount of foreign currency exchange , but note that there is manipulation and corruption operations in this matter. "

He stressed that" the most dangerous situation of facing the citizen with private banks is that they are closed and locked their doors without warning , without any legal accountability to them, so we see that the majority of citizens fled to deal with private banks because of this issue. "

as Dr. Akram Abdel Aziz , head of the economy and the investment sector in the Arab women 's Union niche of the Arab League , Iraq branch , " said we can not call a recipe uncles on private banks, but we have a good private banks in economic activity and have the ability the granting of credit and played a companion role of the government sector , but there are private banks delayed and stalled and stalled in the reimbursement of depositors and this was a cause for another look for these banks. "

She's at night , " said the reluctance of the service and not to keep up with some of the banks of modernity and red tape in the private banking system , which was supposed to Ntaktah and these things have their role and impact in addition to the lack of awareness among people of the importance of the existence of a private banking sector and the outlook implies the need to expand the scope of financial inclusion which means banking service delivery to all citizens , whether in the public sector or the private sector. "

She stressed that" the central bank pursued a strategy of financial inclusion It is an effective strategy designed to contain chunky outside the banking organization funds, which amount to 77% of the cash value and wisdom of the lack of awareness of the bank and put troubled banks in securing the needs of depositors as well as the circumstances through which the country pays citizens to keep their money at home instead of being deposited in a bank. "