2017/05/28 (00:01 pm) - hits: 592 - number (3934)
Monetary savings estimated at 40 trillion dinars
Contributed to a liquidity crisis in the last two years and falling crude oil prices, as well as the volatile security situation, exacerbated the phenomenon of hoarding cash Iraqi citizens also paid double the confidence in the banking system because of structural weakness and difficulty in transport and deposit processes.
According to available data, the mass of cash within 40 trillion dinars, is now out of the economic cycle, it's Chunky in houses and shops, this affecting economic activity and investment and development.
Financial adviser to the Prime Minister Dr. Mohamed Saleh's appearance, says wedged (range): the phenomenon of hoarding cash around as much in developing nations, including Iraq, that citizens hoard their money in homes outside of bank credit, and this is a deduction from income cycle completed in banking institutions interested in fundraising and income verification cycle work great advantage for economic activity,
noting that two factors for not investing the citizens in banks, their inability to interact with the public because of inherited social customs and traditions in society, weak structure The banker who contribute not to promote a culture of citizen's investment banks, thus there is hesitation and fear of investing money in banks and governmental and private banks alike.
Adds the benefit of saying: banks and investment banks depended on genuine guarantees for citizens and easier pull his funds and those funds run by banks and banks within the economic cycle, and thus their ability to return loans lending and that's what drives the market, pointing out that, in the past two years, liquidity crisis and falling world prices for crude oil and legislative national economy, banks and potential role of pagers in the promotion of a culture of investment.
And, to promote a culture of investing in banks and urged citizens to raise savings rates of liquidity in banks especially moving loans towards the beneficiaries and reduce the country's need for foreign loans, and thus move the deficit on the one hand and move the excess.
He fit, Premiership, ratified the deposit insurance corporation adopted almost a year ago, but the work hasn't seen the light, which is a real guarantee for citizens' money when deposited in banks and State banks, and therefore less risk and risk operations on money invested, pointing out that the most important steps to encourage investment in banks, are open to the public and bond soundness and blocking his accounts by companies, this chunky liquidity absorption methods with citizen and institutionalize her income cycle figure Correct by protecting deposits.
A valid opinion, the Government should create institutions of trust and raising the psychological barrier between banks and banks on the one hand and on the other hand, citizen awareness campaigns for the citizen and compactness risk exposure of money stashed away.
The financial expert said Dr Ahmad barihy, in an exclusive interview for (range): that money is when the citizen and deposits the funds in banks and banks, so it is natural that keeps people and companies with the money in their own vaults for walks daily.
Barihy added that the last ten years, which decreased the currency of cash and dealing with banks and banks more by the citizen, pointing to the need to facilitate transfers and deposits by banking institutions, so no citizen find hard to deal with, and enhance security in the country, the fact that there are controls on banks and banks by gangs and armed groups.
There are several programs have been asked to develop banking mechanisms, recent years have shown significant improvement in banking by increasing awareness of the citizen and the bank officer or Bank through money and deposit the beneficiary draws different amounts.
Barihy finds, no money in funds: rather chunky, this present in each State between what is called a coin and financial deposits, and hoping that the proportion of currency for deposits in banks.
Barihy notes, the currency appreciated between 35 – 40 trillion Iraqi dinar, this amount is not considered significant when counted on for Iraq's population and average per capita GDP and the estimated 6 million dinar, amid the decline in oil prices and hoarding individual nearly million Iraqi dinars that no collection is extraordinary.
The Iraqi Central Bank called citizens earlier to acquire national bonds rather than relying on hoarding money, those bonds would bring them "good financial benefits."
The Central Bank Governor stressed the relationship at a press conference, the national bond "will bring good financial returns to the citizen", indicating that the Central Bank put interest on bonds, which compete with foreign interest, pointing out that the Central Bank wants to attract the interest of the citizen through internal bonds instead of resorting to the bond.
The Central Bank announced in January 2015, Iraq financial reserve equivalent to one and a half times the mass of cash, calling it "the best" in the world, and stressed that the Iraqi financial institutions "unable" to cover the deficit, he stressed the need to reconsider the budget and structural expenditure and income diversification and greater investment to address the decline in oil prices.