At the time of the Iraqi Central Bank announced its intention to raise interest rates on funds held in its Treasury to + 18% in the hope of attracting more money for recycling to serve the increasing rates of cash needed to finance the federal budget and to try to attract nearly 60% of cash trading blocs which are likely to be now in Iraqi homes; the Central Bank of Japan to adopt a policy of negative interest,-0.1% on funds deposited with any bank will impose on banks Business pay 0.1 per cent on certain deposits had promised a surprise economic communities step bit of the third largest economy in the world.
Negative interest policy that is not intended to provide liquidity, but is for the purpose of moving the economy and encourage banks to lend, tackle the economic downturn and overcoming stagnation, as it was for the greater purpose is to access the value of the Bank's target inflation of 2% after reaching-1%, the so-called negative inflation or economic recession, deflation, Japan alone is not followed that policy was preceded by many European banks, including Swiss banks but that happens for the first time, a step which rose Nikkei 225 in Tokyo, main immediately after the adoption of resolution 546.71 points, to 17,000 and 588.16 points, while JPY from 118.65 Yen to 120.40 Yen to the dollar.
Here comes the most important success factors for banking, trust, those that missed its rampant corruption and security lapses, although cases of robbery and theft of money by criminal gangs, robberies, murder and stealing large sums of up to hundreds of millions of dinars; not pushing others to believe their money in banks, financial corruption toppled all elements of trust that was supposed to be built on strong foundations and is able to attract funds, trillions of TD monthly has estimated 40 trillion dinar value compensation staff in balancing the 2016, even if work attracts a part of those funds was fixed monthly liquidity plus some imports to believe the salaries of Iraqi personnel who do not millions have only charge per month.
Crimes of embezzling large had discovered years ago in a series of such crimes put bone where we are from financial corruption, and accessories, notorious, one of the landmarks of those crimes and others they tricked banks, embezzled might be a little nsibia as compared with what was discovered at an auction sale of currency manipulation daily parliamentary Finance Committee revealed and investigations are underway.
We need a comprehensive review of our financial and accounting for the purpose of determining the weaknesses that plagued and make him a target for the blatant violation by would-be, and most, to lose that confidence which are mainstay banking business, we need international experience is inevitable, we must focus on brought in as quickly as possible to integrate image in front of trying to pay the money to the Central coffers, assuming that Iraqi will impose negative interest rate, what will happen? Depositors will unload its vaults at lightning speed, while not in Japan or even in Denmark, when applied to such interest of Swiss, so that the confidence enjoyed by those banks made it a formidable global funds they institutionalized it.
There is a communal culture we we through our efforts that we fix her of our society to adjust to us what the home economic crisis understand the major part of the solution and realize this soon.