Banks In Kurdistan Out Of Cash !

[DinarThug]

CNN. Broadcasting With Empty Pockets From Kurdistan ! Send Money With Value Now - Give Til It Hurts !

 

 

 

Banks in Iraqi Kurdistan out of cash



‘Sorry, we're out of money’

January 3, 2014

SULÊMANÎ, Kurdistan region 'Iraq',— Locals in Iraqi Kurdistan have found themselves unable to withdraw cash from their banks, despite the fact that they have enough in their accounts. It’s a liquidity problem that recurs every year around this time. Some financial analysts suspect a plot and locals have started keeping their cash under the bed.

Nawzat Qader is standing helplessly in front of a bank in the city of Sulaimaniyah, in the autonomous region of Iraqi Kurdistan. He had wanted to withdraw a small amount of money, so that he could cover his family’s needs over the New Year period. He had deposited IQD800,000 a few weeks ago (around US$500) but when he went to the bank to withdraw it, he was told that the bank had no cash and that he would have to wait.

“How is this possible?” Qader complained loudly. “How is it that I go to my bank to withdraw money that I know I have but I must return home empty handed? How can we trust our banks when things like this happen?”

This has become a common problem for banks in the region around this time of year. Iraqi Kurdistan, in Iraq’s north, operates mostly independently of Baghdad and has its own legislature, military and parliament. However what it does not seem to have enough of is cash. Every year toward the end of the fiscal year the problems become more obvious; it’s also led to delays in salary pay outs for government employees.

“Banks here don’t function the way modern banks do,” says Ali Hama Salih, formerly host of a TV show that uncovered corruption who’s now a politician for the anti-corruption Change movement. “The banking system here has failed.”

“People have lost confidence in the banking system because of these crises in liquidity,” agrees Hawar Sheikh Raouf, of Iraq’s Mansour Bank, which is half owned by the Qatar National Bank; the latter is regarded as one of the Middle East’s safest. “The poor services offered by some of these banks don’t help either.”

Raouf also believes local authorities should take some of the blame. They haven’t tried to support a stable financial system nor have they tried to do anything about this recurring problem of liquidity.

“The solution is not that difficult,” Raouf says. “But local authorities don’t seem to understand how much of a problem this is and how much suffering it causes.”

Meanwhile Mohammed Raouf, a professor of economics at the University of Sulaimaniyah, believes the crisis may have been created deliberately. “Iraq’s Central Bank specifies how much cash a bank must have in reserve, in order to carry out its daily business,” Raouf explains. “If the bank doesn’t have enough cash in reserve,www.Ekurd.net then it is, to all intents and purposes, bankrupt. I believe that those in power are holding the cash up somewhere along the way so they can retain their control on it.”

The professor may well be right. The Iraqi Kurdish Minister of Finance, Baez Talabani, announced that local banks don’t have enough cash because Baghdad isn’t sending as much hard currency as it should.

Despite efforts by both the banks and various investment houses to try and shore up confidence in monetary institutions in Iraqi Kurdistan, nothing really seems to have helped: a lot of locals still prefer to keep their money at home.

Fattah Nouri is one of these. The 60-year-old recently sold some land he inherited but instead of going to a bank, he’s keeping the money safe at home. “I’m planning to buy some more property and I’m afraid that when the time comes the bank will just tell me they don’t have the cash,” he explains. “And if that happens I might lose the opportunity to buy the property I want. I know it’s risky but I’d rather keep the money at home than in a bank.”

http://ekurd.net/mismas/articles/misc2014/1/state7629.htm

 

[yota691]

From the Website of Qatar website..Iraq...Chart below is more explainable just click on the Link in Green....Bank News , Home :   Author: admin   | Data :7-12-2013, 06:27 | Views: 0 141Comments

 

 

 

Al-Mansour Bank doubles profit during the ten months

Tables show the accounts of the Bank as at 10.31.2013 Mansour said the bank has doubled its profits and assets during the first ten months of the year and this has made a quantum leap from the Iraqi private banks as that the bank has increased its capital to 250 billion dinars, and enjoys the confidence of high between international banks and local banks, one of the three observed in the allocation of the opening credits from the presence of the Iraqi Central Bank has an ambitious plan to deploy its branches in all the cities of Iraq.

 

31/10/2012 billions of dinars

31/12/2012 billions of dinars

10/31/2013 billions of dinars

Total Assets

389

413

871

Current accounts and savings deposits

112

135

565

Cash Credit

76

78

100

Credit promissory

57

57

78

Dion late payment

4,117

5,121

4,398

Profit and Loss

11.9

13.9

25.9

 

Edited January 3, 2014 by yota691

[davis411]

Out of CASH

that is 2 of us then, 

[yota691]

And a word from the Chairman of the board that somewhat old...Word of Mr. Chairman, the first annual meeting of the General Authority in 22/5/2007 

The Bank's activities since its inception in 13/9/2005 and 17/4/2006 intimacy with him and work in his works performed up to 31/12/2006 can be found through the first annual report, which shows the process of the bank for the first year of its inception, indicates where excellence in work banking and in record time compared to banks that created many years ago.

Despite the instability of the security situation, but the Al-Mansour Bank contributed to the provision of banking services and at remunerative prices to encourage customers to save and invest at the same time, also contributed to the continuation of the use of modern technology in the banking business through the participation of some of the employees of the bank in the sessions held by the central bank on the face selection.

 I must point out the most important tangible results achieved by the bank, which is an increase in the volume of deposits of all kinds, and this was reflected activity on rise in net profit for the bank, which shows the extent of the bank's activities and distinctiveness banking work. Although these results highly not possible without the trust and support customers with the bank and the efforts of all associates in the bank, and to support and assign the Iraqi Central Bank and the Department of Registrar of Companies who let all of them thanks and appreciation.

Finally, we ask God to bless those in the sincere efforts that have contributed to the success of this work and singled out the senior management at the bank and working hard for their cooperation. It is reconciled to God for the good and prosperity of the country ..

 

                                                                                                                                                                                                                                                                          Chairman of the Board

Edited January 3, 2014 by yota691

[SnowGlobe7]

SO is this a real issue...if this happens at this same time every year...is it really a bank failure?

 

My worry is that they will want their own currency...that could be a problem for us wanting at least a one to one RV

[yota691]

SO is this a real issue...if this happens at this same time every year...is it really a bank failure?

 

My worry is that they will want their own currency...that could be a problem for us wanting at least a one to one RV

No need to worry about the currency, IQD..IQN..  also represents Kurdistan..IMHO...the depletion of currency could be the increase in Capital of 250 Billion IQD, required by the CBI...and they don't want to release it...maybe...

Edited January 3, 2014 by yota691

[wshflthnkn]

I believe they have the currency. It's just all digital. The fact the banks do not have physical cash is a good sign to me. It's got to be awful for the iraqi people. I'm surprised no one has started blowing banks up cuz they can't get their money.

[MyLadiesDaddy]

OR it could be that the CBI isn't giving out much dinar because they want to be the

one's holding it. Though digital money would be subject to an RV also. One thing

is certain, we have read many times how that Iraq needs people to trust banks. And

this isn't how you do that.

[siberian_shaddow]

Maybe they should ask Thugs for a dinar loan he is hogging it all. Go Rv

[jeepguy]

has to be tied to the budget ,,,  the pass the budget , and the money train rolls on !    just my thinking ...... and  go ahead and re-value the dinar to 1 to 1  values   and they will not have to go too bank to make withdrawals ,  they have the q-card full of  spending  loot    

[siberian_shaddow]

has to be tied to the budget ,,, the pass the budget , and the money train rolls on ! just my thinking ...... and go ahead and re-value the dinar to 1 to 1 values and they will not have to go too bank to make withdrawals , they have the q-card full of spending loot

I totally agree with you jeepguy I just wish they thought more like us. Go Rv

[dontlop]

Obamas got everything under control

[Maggie123]

This may, or may not, have anything to do with this article... but I remember Ziggie and I shaking our heads a couple of months ago...

 

There was an article that said they hadn't transported any cash to the banks... since like last May... because of security risk.

 

I know.... it's hard to believe that could be true.

 

 

"The professor may well be right. The Iraqi Kurdish Minister of Finance, Baez Talabani, announced that local banks don’t have enough cash because Baghdad isn’t sending as much hard currency as it should."



Read more: http://dinarvets.com/forums/index.php?/topic/169086-banks-in-kurdistan-out-of-cash/#ixzz2pNpN2mVn

 

 

 

 

 

 

BTW... I sure miss that Ziggie ... if you are reading this my friend...  Happy New Year!!!

[easyrider]

what about their reserves and the new valued currency that is coming? LOL Kurdistan is not this stupid. Something is def. up.

Edited January 4, 2014 by easyrider

[unirod]

It's hard to get the 3 zero notes off the street when people are hoarding them under the matress. They too are looking for the 1:1 exchange for lower notes with higher value...IMO

[SocalDinar]

Hi Maggie

I remember that too. I believe it was actually an announcement from the CBI that Yota posted.

Edited January 4, 2014 by SocalDinar

[sandstorm]

has to be tied to the budget ,,,  the pass the budget , and the money train rolls on !    just my thinking ...... and  go ahead and re-value the dinar to 1 to 1  values   and they will not have to go too bank to make withdrawals ,  they have the q-card full of  spending  loot  

private bank liquidity has no ties to the government budget. if they dont have cash before a revalue, how would they have enough after?

[DinarThug]

This Is Where All The Dinar Went !

U may have to Click on it to see it.

uploads/monthly_05_2011/post-34743-130585941206_thumb.jpg

 

 

Maybe they should ask Thugs for a dinar loan he is hogging it all. Go Rv

 

Just Click On The Image In The Top Quote For Confirmation !

 

          

 

[Djorgie]

davis411,

 

Make that 3 of us!

 

... and what kind of a bank runs out of money?

[sandfly]

4 OF US

[FXStockpiling]

I haven't posted in quite some time but this article got my attention...

 

You see this type of treatment all over the World, and I like to refer to it as the "stepchild treatment" Kurdistan being Iraq's "mini me" or insignificant other... It would seem plausible that the CBI would let Kurdistan run out of the IQD first...

 

I know the MOP said "Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities." http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&lng=en But I think when this happened Iraq was still under sanctions and could not pull it off because they could not have an International currency...

 

But if you were to make a major change in your rate, wouldn't you like to be the main beneficiary? Wouldn't you hold it in your pocket til the cards are on the table? 

 

Iraq pegged the IQD at 1170 against the USD on 01/18/2009 Sunday, This rate remained pegged until they moved it 3 years later on 01/17/2012 Tuesday... So I think that the 17th is the date and this year it falls on a Friday, also the 3 years the MOP is speaking about would be the first peg and furthermore I think that the IQD is about to go on the Forex market and will drop it's peg for a float on the 18th or 19th of this month... 

 

So how about it Dinarians? What do you think? Anyone have anything to add here?

 

 

Thanks in advance! 

 

 

 

[unirod]

5 years is a long time for any currency to be stuck at 1 rate.....IMO

[gregp]

Obamas got everything under control

Yup. Just like Fallujah.

[Maggie123]

Hi Maggie

I remember that too. I believe it was actually an announcement from the CBI that Yota posted.

 

Thank You SocalDinar... I remember you were there too that day and we were all shaking our heads. (sign of the times... eh?)