Advertisement

Thurs. PM TNT News Articles from Iraq 4-13-23

0
269
Advertisement

______________________________________________________

TNT

Tishwash:
Iraqis create their own financial system: We deposit the dinars in the bank and store the dollars at home

For months, citizens have resorted to depositing dinars and storing dollars in homes, in an attempt to adapt to the exchange rate, while financial experts suggest adopting the dinar only in internal transactions, and ending dollarization in the iraqi markets. 

This shift in the financial behavior of the Iraqis resulted in an increase in the volume of dinar deposits to more than 57 trillion dinars, yet 70 trillion dinars are still outside the banking system, according to information collected by the 964 . network

Economists and banking officials said that the financial behavior of individuals has changed with the exacerbation of doubts about the banking system and fears of a repeat of the Lebanese scenario, despite the central bank’s assurances that Iraq’s situation is different because the deposits are “guaranteed by a ”.specialized company

new compass

Economic expert Hussein al-Khaqani says that the dollar crisis has prompted citizens to change “the compass of financial transactions, away from banks, as ”.the majority resort to storing hard currency in homes Al -Khaqani added,  to Network 964 , that“citizens who deal in dinars regularly, deposit it in banks to collect it in the short and not long term, in order to ”.withdraw it and convert it into dollars that are stored in homes

076/Raed Hamed ”financial model“

______________________________________________________

Advertisement

______________________________________________________

When the dollar crisis escalated, and the exchange rate for the $100 category reached 180,000, the engineer, Raed Hamed, (32 years old), followed a new financial plan, requiring withdrawals from his bank account in dinars, provided .that his salary, which he receives in dollars, be deposited in its place Hamed tells 964 Network , “I have two accounts; One of them is in dinars, and the second is in dollars, and when the local currency collapsed, I followed a plan to minimize the damage, by depositing my salary that I receive in dollars, and .withdrawing the equivalent or less of it in dinars

Officials and experts attribute the citizens lack of confidence in the banking systems to many reasons, most notably the lack of infrastructure in the more than 70 banks  

However, the government is trying to introduce electronic points of sale (POS) that rid market transactions of paper cash, in favor of using electronic payment .cards

Smart financial transactions

An official at the central bank says, “The banking culture is making progress in Iraq, in light of the expansion of the use of smart cards, and the increasing “.number of employees who have settled their salaries

Despite this, there are about 70 trillion dinars circulating outside the banking .system, while the monetary mass is currently about 100 trillion dinars

The official, who declined to be named, added to 964 Network , “Hoarding money in homes prompted the Central Bank to take measures to promote technology in the financial sector, such as using smart cards to pay government transaction “.fees

______________________________________________________

Advertisement

______________________________________________________

The Central Bank went further, after establishing a “deposit guarantee company”, to secure customers’ funds, and in the event that a bank declares bankruptcy, the .company will compensate it

Last January, the Council of Ministers obligated all governmental and nongovernmental departments to open bank accounts and provide point-of-sale devices for electronic payment (POS), to collect money, and encourage people to .open bank accounts

7 million bank accounts 

On the other hand, the Executive Director of the Association of Banks, Ali Tariq, believes that the dollar crisis has reflected positively on banks, with an increase in the demand for opening bank accounts by merchants for the purposes of financial transfers, especially after adopting the exchange rate of 1300 when .transferring abroad

Tariq added, in a statement to 964 Network , that“the volume of deposits are much less than that.

Tariq asserts that the final solution to the dollar crisis lies in “ending dollarization, and adopting the dinar in all sales inside Iraq, while the dollar is used for external ”.dealings in travel or importing goods and others   lint

Source: Dinar Recaps

______________________________________________________

If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
______________________________________________________

All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.

______________________________________________________

Advertisement

______________________________________________________

Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.

Copyright © 2022 Dinar Chronicles

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here