Iraqis: save money in safer homes from banks

February 20, 2016, 3:11 pm

Author: alzawraapaper


Putting Abu Malik, a Baghdad electronics merchant, most of his money in his house, and the House of one of his sisters, after dragging them around 85% of the Bank, and retained 15%, for fear of tampering or loss under a suffocating financial crisis in Iraq, caused by low oil prices in the world market, and the Government's austerity policy.

Comes in conjunction with modern Street, and remarks by government officials and financial experts and economy from possible Iraqi monetary scarcity, bankrupting the country over the next few months, which has led most of the money, and even employees to save money in their homes, especially after Iraqi lived the bitter experience in the years of economic embargo imposed by the UN Security Council in the wake of Iraq's invasion of Kuwait in 1991 and continued until 2003.

Says Abu Malik mtzebz, and market demand for electrical appliances is very weak, people were reluctant to buy these devices, and food and clothing, to provide money for other needs, which called for most traders to deal cautiously with the market situation, save money, and the transfer of goods into cash.

He added that "all almo'shra stresses that the future Iraq on bankruptcy because of adoption, primarily oil, she borrowed from international banks, raise taxes and fees, this is cause for concern in conjunction with statements by government officials that lead to frustration about the upcoming monetary scarcity which featured effects on traffic across Iraq."

Financial Minister Hoshyar Zebari said earlier that the Government might not be able to pay the salaries of its staff by April next year, due to the oil crisis and draining State resources by war.

And civil activist Saeed Yassin says that "the lack of confidence of traders and financiers and even low-income, banking system, caused by the absence of a law to protect the funds in banks."

Yassin said that "these concerns is not new, and not the result of the current circumstances, owing to the absence of funds Protection Act, especially that Iraq has gone through a lot of wars, as well as economic blockade, and all these factors led to such concerns and lack of trust between the customer and the Bank.

He noted that "these concerns are part of the personality, where I grew up in the shadow of the dictatorship (1986, 2003), because that was launched by the former regime, and (everything for the fight) and (Arab oil for Arabs), with widespread corruption in the financial sector banking".

With economic and financial analyst Laith Mohammed Reza, "there are measures that can be adopted to encourage people to deposit their money in banks to contribute to the economy through the activated part of the General liquidity," adding that "the money that has citizens in their homes is estimated at 25 billion dollars."

Mohammad Reza said that "raising the interest rate on deposit in banks, could be one of the most important measures encouraging citizens to deposit", for the launch of a national campaign to raise awareness of the importance of banks and privileges provided to its customers. "

Mohammad Reza continued, "my Central Bank to monitor banks and how to fulfil their obligations with customers and is the guarantor of the money depositors, and declares that ltamaenh people and banks".

Iraq reserves lost more than 60 percent in the past two years, dropping from 88 billion dollars in November 2013 to 35 billion dollars, according to statistics from the Central Bank.

The Central Bank recently announced its intention to issue international bonds by $ 2 billion by the year 2016, with Baghdad intensified steps to borrow from international institutions to bridge the fiscal deficit of the oil-rich country.

The Bank Governor said that "the World Bank will guarantee up to one billion dollars of the total bonds to be issued, expected to be return on new bond" a lot less "return".

According to brokerage to buy and sell currencies (Exchange shops) that there is a clear demand to buy the local currency, and replace it with the u.s. dollar or the euro, because of fears of shortage of the local currency.

He said Mazen Mohammed (owner of Citibank) West of Baghdad that "people's fears are legitimate, because the financial crisis experienced by Iraq, the majority of their money transfer in foreign currency into local currency, and even the staff, they know matkhbah the coming months".

Ahmed stressed that the self-made banker "majority of depositors pulled their money from banks deposits, fearing their seizure by the State if the crisis worsened.

Self-made pointed out that "the us dollar equivalent of IQD around 1150.

Several banks announced GATC bankruptcy because some manipulation of client funds through real estate trade, raising fears of investors on their money.

The CBI had earlier announced its commitment to provide liquidity to banks which declared bankruptcy because of acute shortages of hard currency, and their national, but the approach of State banks from bankruptcy is complicating.

The number of Iraqi governmental six banks are banks, Rafidain, rational, Socialist, and real estate Bank and the agricultural Bank and the Industrial Bank, with about 20 Iraqi non-governmental banks those banks highlighted the Middle East investment and Baghdad.

Observers and experts warn the economy in Iraq the seriousness and value of the dinar mode due to the current financial crisis, which hit the country as a result of falling oil prices globally, which directly affected the low income of hard currency Iraq by up to 70% over the past six years.

And accompanied by security challenges and fears of a collapse of the situation in the capital Baghdad and the expansion of organized crime and gangs of robbery and armed robbery, as well as the proliferation of professional networks for some categories of counterfeiting Iraqi currency and push it all to start teetering Iraqi dinar slipped in value against the dollar, which portends a difficult year on the Iraqis.
(Source, August).