Iraq’s banks refuse to ante up amid liquidity shortage

[SocalDinar]

Al-Monitor visited this bank, its lobby was filled with scores of customers demanding their money, and the administration was refusing to allow customers to withdraw all of their funds at once.

Umm Ahmad, the mother of four grown children, travels more than 300 miles every Thursday from Basra governorate to Baghdad to make withdrawals from North Bank. She began doing this after the bank stopped allowing withdrawals from its branches in various provinces and limited such transactions to its main branch in the capital.

Umm Ahmad seemed stressed as she discussed her situation. She told Al-Monitor that her children need money to emigrate, so she decided to sell their house, give her children half of the proceeds and buy herself a smaller house with the remaining amount of money she had deposited in the bank’s branch in Basra. However, the bank refused to let her make the withdrawal. The person who bought her house is now demanding eviction in less than a month, while she is unable to pay for the new house because the bank limits withdrawals to $2,000 per week and sometimes only allows withdrawals every two weeks.

Many Iraqi citizens have with similar stories. During the aforementioned visit to the unnamed bank, Al-Monitor saw people shouting among themselves and fistfights broke out between the bank’s staff and the customers. An official at the bank said they had a rescue plan and had offered customers cars and real estate in place of their money.

Umm Ahmad said such offers gave her hope that she would see at least some return of her savings, even if not in cash, so she decided to buy a house. She and other interested customers were given a list of addresses for the houses they could purchase with deposited funds, yet they were shocked after those living in the homes threatened to kill the customers should they buy their houses. Umm Ahmad said it became clear that all of the listed properties were mortgaged to the bank and the owners had failed to pay the interest on their loans.

On March 19, Ihsan al-Yasiri, the director of issuance and reserves at the Central Bank, made press statements aimed at reassuring customers of national banks, explaining that the Central Bank can ensure the money through the legal reserves available at each bank.

Speaking to Al-Monitor, banking expert Inas Mohammed said that the government is responsible for a huge chunk of what the private banking sector is going through.

“The liquidity problem in private banks is linked to investment transactions and projects with the government. For example, the Ministry of Education owes one of the banks that are currently suffering from liquidity issues 100 billion dinars in dues, and the ministry has only paid back 8 billion dinars in a payment last week,” she said.

According to a source who requested anonymity for security concerns, Asia Cell, one of the largest communications companies in Iraq, withdrew deposited money from its account at that same bank. The source told Al-Monitor that the bank still owes Asia Cell 200 billion dinars, an amount it is unable to pay, putting the bank on the brink of bankruptcy. 

Awatef Jalloub, an economics professor at Baghdad University, told Al-Monitor that the solution lies in approving a new law that would help develop and support local banks, since current law does not allow them to be open to the international market. She pointed out the necessity of encouraging banks to pair with international banks in order to create major development banks that are able to finance large projects in the country.

Meanwhile, Safwan Qassi, an accounting professor at Baghdad University, believes the answer to saving these stumbling banks lies in merging them with bigger banks or government intervention, whereby the government buys out these banks or takes on a role in managing them. Speaking to Al-Monitor, Qassi noted that codifying customer payments, controlling withdrawals, imposing a certain exchange rate and forcing a change in currency are all factors that weaken the banks and undermine customers’ trust, which results in poor performance on the part of the bank.

 

       

Read more: http://www.al-monitor.com/pulse/originals/2015/07/iraq-banks-liquidity-deposits-withdrawals-economy.html#ixzz3g5yKDt8H

[rockfl9]

PHEW   I thought Greece was a problem!

Obviously the Iraq banking system is in trouble.

Has anyone been able to cash out of Warka?

[Texstorm]

I believe that if you have had the time and resources to fund a foreign bank account, you " ain't hurtin" Rock ! So that should not be any of your concern.

[caz1104]

LOL-Doom & Gloom.

I read yesterday on the internet(so it must be true) that millions attempted suicide by jumping off cliffs when it was reported on CNN that the world was indeed FLAT!!!

[SocalDinar]

LOL-Doom & Gloom.

I read yesterday on the internet(so it must be true) that millions attempted suicide by jumping off cliffs when it was reported on CNN that the world was indeed FLAT!!!

News is always subjective Caz. Just like all the Iraqi news articles we see posted in the News section.

But i do always like to hear others views even if i disagree.

I am a Republican and I I really dislike the Clinton's and what they stand for, but i do not change the station when they speak. In fact i usually turn up the volume.

 

It may not all be gloom and doom in Iraq but how would you describe Iraq's stability right now Caz.? Do you think they are making any progress economically? Are they a united people?  Are they a hard working and  proud people. ? Are they stable?  Will they ever produce anything other than oil?  Are their politicians.ethical ?  Are these politicians doing anything policy wise that will help them prosper.? If a HCL is passed do you believe both sides will truly honor it?

 

You joined DV in 2010 Caz.   Honestly, Do you believe they are more stable today than in 2010.

 

Can they afford to revalue their currency to 1 cent when that would cost them 900 Billion dollars + ?

I do not see how or why they would ever do this.  Why would they throw money they do not have away?

How about $1.00. Would that not cost them $90 trillion +?

I do not see how or why they would ever spend money they do not have this way

Edited July 17, 2015 by SocalDinar

[caz1104]

"why would they throw money they do not have away"-LOL come on now,really? I see rocks are not hard to come by to hide under. This concept is nothing new and is universally used by all countries. All of the questions you ask can be put forth to many parts of the world.

The "gloom & Doom" I was referring to, is the LOPster gang not the news............tho that is a great comparison. I know, I know, just keepin it real..................but so am I. You don't have to look far for negatives as evidence here in da tank, it's everywhere. And folks wonder why there's no joy in mudville. Lopsters & Gurus have more in common than either cares to admit. Each goes over the top in their Dinar views, and neither believes they are wrong. One side may be in it for profit(god forbid!!!), the other for spite/vengeance. Both have massive egos, and I guess both are a evil necessity. JMO - and I could be wrong. But being here as long as I have history shows i'm probably right. The best part about DV is I don't spend as much time here as I use to. And am willing to wait on it's outcome, good or bad. And hopefully in my lifetime. Peace

[SocalDinar]

"why would they throw money they do not have away"-LOL come on now,really? I see rocks are not hard to come by to hide under. This concept is nothing new and is universally used by all countries. All of the questions you ask can be put forth to many parts of the world.

The "gloom & Doom" I was referring to, is the LOPster gang not the news............tho that is a great comparison. I know, I know, just keepin it real..................but so am I. You don't have to look far for negatives as evidence here in da tank, it's everywhere. And folks wonder why there's no joy in mudville. Lopsters & Gurus have more in common than either cares to admit. Each goes over the top in their Dinar views, and neither believes they are wrong. One side may be in it for profit(god forbid!!!), the other for spite/vengeance. Both have massive egos, and I guess both are a evil necessity. JMO - and I could be wrong. But being here as long as I have history shows i'm probably right. The best part about DV is I don't spend as much time here as I use to. And am willing to wait on it's outcome, good or bad. And hopefully in my lifetime. Peace

But we are not talking about other countries here Caz. We are not expecting any other country to revalue their currency like we are with Iraq.

The question still stands. Do you believe Iraq is Stable.

I admit I started out in this by listening to Gurus. I think that's true for alot of people. . I can not tell you why i believed the hype. I guess greed is the best answer. I was blinded by the thought of easy money and riches

And I may be wrong about Iraq. Maybe they can pull it together and become a wealthy country. But I don't see any reason for a country to increase the value of their currency like people are hoping for with Iraq.

Every dinar in circulation and electronic dinar is a liability for the CBI. I just can not see any benefit in them increasing the value 100,000% Why would they do that?

Why would they increase their liability by 90 Trillion US dollars. They have budget deficits with a 100 Billion dollar budget. 90 trillion would cover their yearly budget for 900 years.

So why are they borrowing from the IMF and World Bank? Why are they issuing 5 Billion in Bonds ( more debt ) Why did they ask Kuwait to put off their payments per the UN terms and conditions for Ch 7 release.?

If they want the dinar on par with the value of the dollar why not just introduce a new currency ( delete the zeroes ) The dinar would then be pretty close to the value of the USD.

It would only cost them the price to print and distribute the new notes and collect and destroy the old notes. They would still have these same costs if they revalue the dinar.

They would need to print new lower denom notes, distribute them and destroy the larger notes.

So the million dinar question is Why would they revalue their currency? I have not seen anything that makes since for Iraq to do this. Why?

[rockfl9]

Can they afford to revalue their currency to 1 cent when that would cost them 900 Billion dollars + ?

I do not see how or why they would ever do this.  Why would they throw money they do not have away?

How about $1.00. Would that not cost them $90 trillion +?

I do not see how or why they would ever spend money they do not have this way

BUT SD, you forgot about Fiat money and fractional banking. And don't forget that ole black magic central banking. They  only need to SAY the dinar is worth a dollar and SHAZAM .  There you have it. 

[caz1104]

Monday morning QB's - LOL

My question to you and your lyin thru his teeth partner in crime why do you care? Why look for an answer that is not there.............yet. You can read as many articles (pro or con), nothing changes.The majority of countries put themselves in similar predictaments with their financial/economic models, nothing earth shattering So if you've made up your mine on it's outcome ..............live with it. You say your a business owner...........if this was one of them, would you still own it or would you already dumped it and moved on? I know myself if I had so many doubts about one of mine..............I would have sold it aloooooooooon time ago. For me i'm playin with house money, so whatever happens .......happens. I don't know where all the LOPsters live(other than DA Tank)..........but it must be 24/7 darkness, with no happiness or laughter-sad. The extreme opposite can be just as annoying, but I'll take it over darkness any day. Here's hopin ya'll discover there is a life other than negativity. I'd say have a Great weekend but I wouldn't want to offend anyone here in Da Tank- Peace

[rockfl9]

Caz , In Casino terms , playing with  House money is a shill paid to bring in suckers to the game! Who's paying you?

 For me i'm playin with house money, so whatever happens .......happens. I don't know where all the LOPsters live(other than DA Tank)..........but it must be 24/7 darkness, with no happiness or laughter-sad. The extreme opposite can be just as annoying, but I'll take it over darkness any day. Here's hopin ya'll discover there is a life other than negativity.

Negativity??? I am a very positive person. 

[SocalDinar]

I have sold most and glad i did. When Daesh started taking over cities I sold and was lucky to get nearly what i paid for them.Even made a few bucks on my 500s. I have kept a few but mostly because of the people i talked into buying dinar. I admittedly would feel guilty not keeping a few bucks into this game knowing some still have dinar.

Luckily my friends and family that bought big. At least what i consider to be big ($5K and up) were also able to sell with only a 15% loss. They all took it as a lesson learned.

And yes I have several business's and some make money and some are borderline hobbies. Its not always about money. You can always make more money.

[caz1104]

I have sold most and glad i did. When Daesh started taking over cities I sold and was lucky to get nearly what i paid for them.Even made a few bucks on my 500s. I have kept a few but mostly because of the people i talked into buying dinar. I admittedly would feel guilty not keeping a few bucks into this game knowing some still have dinar.

Luckily my friends and family that bought big. At least what i consider to be big ($5K and up) were also able to sell with only a 15% loss. They all took it as a lesson learned.

And yes I have several business's and some make money and some are borderline hobbies. Its not always about money. You can always make more money.

LOL!!!! Yes I open a business NOT hoping to make money too!! LOL u guys crack me up

[SocalDinar]

Come on Caz, really?? If your business makes money you pay taxes on that

The goal is always for a business to make some money but your profit and loss reports should show only a modest gain or you pay the tax.

If you lose money on a business three years in a row the IRS considers it a hobby. And mine are borderline hobbies

So It's always a scramble on what to buy at years end. Maybe a new truck or car.

Last December my off-road product company bought a new toy hauler and the new Polaris RZR 1000 4

We do off road desert shows so it's totally 100% legit

We showed very little profit and that is good business .

Don't get me wrong Caz I do pay my taxes but not one penny more than I have to

People throwing money away to our wasteful government cracks me up

Now if you could explain to us how Iraq could come up with 90 trillion U.S. Dollars??

Edited July 18, 2015 by SocalDinar

[caz1104]

As I've said countless times I don't pretend to be a currency expert unlike the cartoon characters that NOW have become such here in Da Tank. I have my own personal views & reasons,but if you've been here long enough you'd know I don't present them to folks I don't know.

My original comment was in response to your owning business but "its not about making money"- LOL

[caz1104]

As I've said countless times I don't pretend to be a currency expert unlike the cartoon characters that NOW have become such here in Da Tank. I have my own personal views & reasons,but if you've been here long enough you'd know I don't present them to folks I don't know.

My original comment was in response to your owning business but "its not about making money"- LOL

Please explain to me how you know 100% what Iraq will do? Family member in Iraq? Banker Friend? New found expertise? I'm really curious. I admit I DON'T know therefore I don't pretend I do. But I'm constantly amazed by those that say they do (pro/con). Comical really

Edited July 18, 2015 by caz1104

[SocalDinar]

I dont know squat about Iraq and World banking. And like you I dont pretend to either. I do know some Iraqis that moved here years ago and are quite wealthy . They say that holding dinars is just plain stupid but that dont mean squat either.

I do have Banker friends. In fact I know a former Vice president of Citi group very well and that does not mean squat either.

Look at your posts. You consistently label people here in the tank for voicing their opinions. I have not seen anyone down here attack the opinions of others in quite a while but you come down here often to do just that.

And everything in life is not about making money for me Caz. I always say Family first and i stand by that.

And you only show half of what i said regarding Money. If you can turn your Hobby into a business why not?

I pull wire for a living and i do ok with that but truth is I love what i do and often take jobs that make little cash to keep busy. I guess i could sit home and watch I love Lucy but that would be a waste of time.

I do see many people that feel its all about the money. You can see that at DV for sure. Yet many of those same people do nothing to create wealth for themselves. .

They Buy that six pack of beer everyday. They sit around and watch games on TV every weekend when they could be working. A 40 hour work week should be the minimum

I still strongly believe that 20% of the population including most business owner carry the other 80% Sad but In my opinion so very true.

So again why would Iraq spend 90 Trillion dollars to revalue their currency? I can not see any reason why they would do this.

And you yourself admit that Business are out to make money .

Countries are and should be run like business .

If you owned a country like Iraq would you spend 90 trillion dollars and revalue your currency to bring it on par with the USD or would you simply spend a few hundred million to re denominate your currency to bring it on par with the dollar?

Which makes more business since. Maybe you could answer this one question this one time instead of avoiding the question.

Edited July 18, 2015 by SocalDinar

[Freedomrules]

You do seem to want to antagonize people here Caz. Whats your motive? This is the LOP section after all. Why do you come down here You come here often to do just that.Here is a few of your derogatory statements in this one thread.

lyin thru his teeth partner in crimemust be 24/7 darkness, with no happiness or laughter-saI'd say have a Great weekend but I wouldn't want to offend anyone here in Da TankI'm constantly amazed by those that say they do (pro/con). Comical reallyLOL u guys crack me upI don't pretend to be a currency expert unlike the cartoon characters that NOW have become such here in Da Tank.Here's hopin ya'll discover there is a life other than negativityIn my opinion these are all childish statements intended to provoke an argument and singling out members here which i thought was against the rules.

I only see two other members here you are referring to.

Edited July 18, 2015 by Freedomrules

[10 YEARS LATER]

WHAAAAAAAATTT ! . . . the World is NOT FLAT ? Now just a gosh darn minute here !!!!

 

Lets not get our panties in a wad . . . there's so much nonsense, news wise coming out of Iraq these days, nobody can really get a decent sounding on what the hell is actually going on. I doubt Iraqis have a clear grasp of what that corrupt mob called the GOI is really doing either

[caz1104]

You do seem to want to antagonize people here Caz. Whats your motive? This is the LOP section after all. Why do you come down here You come here often to do just that.Here is a few of your derogatory statements in this one thread.

lyin thru his teeth partner in crimemust be 24/7 darkness, with no happiness or laughter-saI'd say have a Great weekend but I wouldn't want to offend anyone here in Da TankI'm constantly amazed by those that say they do (pro/con). Comical reallyLOL u guys crack me upI don't pretend to be a currency expert unlike the cartoon characters that NOW have become such here in Da Tank.Here's hopin ya'll discover there is a life other than negativityIn my opinion these are all childish statements intended to provoke an argument and singling out members here which i thought was against the rules.

I only see two other members here you are referring to.

I see u've made a grand total of 97 posts. And u judge me how? I don't know you so I reserve judgement until I do. The majority of folks here in Da Tank I do respond too know exactly as to what I say. And the statements u make reference to are 100% verifiable truths. So if that bothers ya I suggest u ignore my posts and I will do the same.-peace

WHAAAAAAAATTT ! . . . the World is NOT FLAT ? Now just a gosh darn minute here !!!!

 

Lets not get our panties in a wad . . . there's so much nonsense, news wise coming out of Iraq these days, nobody can really get a decent sounding on what the hell is actually going on. I doubt Iraqis have a clear grasp of what that corrupt mob called the GOI is really doing either

100% agree

You do seem to want to antagonize people here Caz. Whats your motive? This is the LOP section after all. Why do you come down here You come here often to do just that.Here is a few of your derogatory statements in this one thread.

lyin thru his teeth partner in crimemust be 24/7 darkness, with no happiness or laughter-saI'd say have a Great weekend but I wouldn't want to offend anyone here in Da TankI'm constantly amazed by those that say they do (pro/con). Comical reallyLOL u guys crack me upI don't pretend to be a currency expert unlike the cartoon characters that NOW have become such here in Da Tank.Here's hopin ya'll discover there is a life other than negativityIn my opinion these are all childish statements intended to provoke an argument and singling out members here which i thought was against the rules.

I only see two other members here you are referring to.

"childish statements..........etc" " "I thought that was against the rules" - now ain't that callin the kettle black!!!!

Your just as guilty!!!! But really ur statements don't bother me..................put ur big boy pants on!

[SocalDinar]

"now ain't that The( POT ) callin the kettle black"

Thanks Caz, I almost forgot I had to feed and water the girls today.

Now this is one of my favorite Hobbies LOL

Edited July 18, 2015 by SocalDinar

[Freedomrules]

WHAAAAAAAATTT ! . . . the World is NOT FLAT ? Now just a gosh darn minute here !!!!

 

Lets not get our panties in a wad . . . there's so much nonsense, news wise coming out of Iraq these days, nobody can really get a decent sounding on what the hell is actually going on. I doubt Iraqis have a clear grasp of what that corrupt mob called the GOI is really doing either

How did you know I like to wear panties? They do tend to creep up on you

[caz1104]

"now ain't that The( POT ) callin the kettle black"

Thanks Caz, I almost forgot I had to feed and water the girls today.

Now this is one of my favorite Hobbies LOL

LOL!!! enjoy

[RVPleaseToday]

It was never Iraq's plan to RV their currency. That doesn't make any sense at all. It would make outside investment in their country impossibly expensive. Countries trying to lure outside investment deliberately  keep their exchange rates low vs the dollar.

 

What has always been their plan, and where we stand to make some money by owning some of their currency, is to create a stable country where they can gradually grow their economy. This is the way the value of their currency will eventually grow and make us money. And, while it looked for a while they might find that stability, and grow that economy, that sadly seems now to be a pipe dream.

 

Despite all of the Guru theories, Iraq cannot wave a magic wand and turn a $60 billion dollar foreign reserve into a $90 trillion dollar bonanza.

.

[RVPleaseToday]

Oh, and, Central Banks don't do fractional banking. Only commercial banks do. If you allege they do, who are the central bank's depositors, and to whom do they loan money? Central banks make money through Repos.

[caz1104]

I dont know squat about Iraq and World banking. And like you I dont pretend to either. I do know some Iraqis that moved here years ago and are quite wealthy . They say that holding dinars is just plain stupid but that dont mean squat either.

I do have Banker friends. In fact I know a former Vice president of Citi group very well and that does not mean squat either.

Look at your posts. You consistently label people here in the tank for voicing their opinions. I have not seen anyone down here attack the opinions of others in quite a while but you come down here often to do just that.

And everything in life is not about making money for me Caz. I always say Family first and i stand by that.

And you only show half of what i said regarding Money. If you can turn your Hobby into a business why not?

I pull wire for a living and i do ok with that but truth is I love what i do and often take jobs that make little cash to keep busy. I guess i could sit home and watch I love Lucy but that would be a waste of time.

I do see many people that feel its all about the money. You can see that at DV for sure. Yet many of those same people do nothing to create wealth for themselves. .

They Buy that six pack of beer everyday. They sit around and watch games on TV every weekend when they could be working. A 40 hour work week should be the minimum

I still strongly believe that 20% of the population including most business owner carry the other 80% Sad but In my opinion so very true.

So again why would Iraq spend 90 Trillion dollars to revalue their currency? I can not see any reason why they would do this.

And you yourself admit that Business are out to make money .

Countries are and should be run like business .

If you owned a country like Iraq would you spend 90 trillion dollars and revalue your currency to bring it on par with the USD or would you simply spend a few hundred million to re denominate your currency to bring it on par with the dollar?

Which makes more business since. Maybe you could answer this one question this one time instead of avoiding the question.

You state I "label" folks here in Da Tank........... after re-reading your post seems you enjoy to stereotype folks(beer drinkers & playin video games) so please don't preach to me. Oh and I Love Lucy is still a great show. And again u Lopsters seem to know what Iraq will do.............again why are you here?........YOU ALREADY HAVE ALL OF THE ANSWERS.........right?

Edited July 18, 2015 by caz1104