Iraqis lose 77% of the value of their money in the siege

[yota691]

Iraqis lose 77% of the value of their money in the siege

- 37 Minutes Ago

 

 12

Shatha Khalil
defines economic compactness as "holding money and imprisoning it from circulation." It may be that money is buried or kept in boxes inside the house and is not taken out to trade in money and capital markets. 
The prevalence of the phenomenon of compactness in developing countries is due to the weakness of the banking culture, which generates a vicious circle of forces that are opposite to the movement of economic and social development. Data of underdevelopment widen the phenomenon of stagnation, which leads to a reduction in the volume of positive savings, , And the economic and social development movement necessary for the development of Third World countries. 
One of the negative effects of hoarding, and its impact on economic activity in developing countries, is the division of income according to economic considerations into two parts: a section that is spent on consumer requirements, and another goes to savings.
If, in the short term, income is assumed to be constant, the individual can only increase his savings by reducing his consumption expenditure.

In Iraq, the governor of the Central Bank Ali al-Aalak said that the phenomenon of financial strangulation outside the banking system is dangerous, as 77% of the currency traded outside the system of the banking system is in a state of exhaustion. In order to employ these resources and pay them towards savings and the direction of the banking sector, And wide at all levels. " 
The economic expert Raed Fahmi said that "securing the internal resources and mobilizing them in the issue of savings is very important, and this constitutes a great danger and concern for the funds in the case of hoarding." 
He pointed out that "the state of compactness means a lack of confidence in the banking sector in attracting deposits, Is not only a financial and administrative challenge but also harms the economic reality and the security reality and the political reality, and here highlights the role of banks in enhancing the confidence of citizens to deposit their money in banks.
The director general of financial operations and debt management in the Central Bank of Iraq, Dr. Mahmoud Dagher, said that the lack of confidence of the citizen banks face all backward countries, including Iraq, where private banks grew in an unstable situation and despite all the changes and improvements, but banks are still unable On the confrontation, and we are still witnessing the dominance of government banks such as Rafidain and Rashid, on most deposits and banking assets and therefore this created a dilemma for private banks to play their part. 
Dagher pointed to "bank irregularities of the instructions of the Central Bank, especially in the sale of the dollar, pointing to the transformation of Iraq into a market economy, which of its conditions supply and demand.
He said there is a high demand for the dollar because of the instability can not be restrained, pointing out that the former was the central bank before 2014 covers each quantity and now we do not cover the quantity required by the importers or who have assets or external transfers this pressure, the economy is 
due lack of confidence The citizens of the banks to the following: - The 
government does not pay the dues of the private sector, contractors and farmers despite the passage of long years to maturity, in addition to the lack of cash liquidity in banks, especially the civil ones, when reviewing the citizen to withdraw his money is shocked by the inability of the bank to meet its dues.
• The Iraqi citizen loses about 5% of his money because of exchange rate difference once deposit money in dollars in his bank account and then withdrawn, and this is a great suffering it, and the central bank to monitor the private banks and government in the installation and set a fixed ceiling for the amount of foreign exchange, Manipulation and corruption in this matter. 
• The most serious situation faced by citizens with private banks is that they close and close their doors without warning and without any legal accountability to them, so we see that most citizens have fled dealing with private banks. 
• The delay in the service and not keep pace with some banks to modernity and routine in the private banking system, which was supposed to overcome, and these things have their role and impact. 
• Lack of awareness among individuals of the importance of a private banking sector. This view means the need to expand the scope of financial coverage, which means the delivery of banking services to all citizens, whether in the government or private sector.

The financial and economic adviser, Dr. Mazhar Mohammed Saleh, said that the manifestations of the compactness in Iraq take different dimensions, namely: self-compactness such as gold, jewelry and precious valuables, and the Iraqi dinar, which accounts for 77% of the currency exported outside the Central Bank of Iraq. 
The stifling weakens the strength of the national economy by diverting its savings, which support the income and production dues, to stumbling leaks, in the income cycle, or weaken production opportunities and sustain economic activity. 
Here is the demand for cash or money-like wealth for the purpose of hedging "uncertainties".
The history of the Iraqi banking has witnessed during the last century the phenomenon of exchanging gold in paper currency by placing gold as a hostage at the jeweler, or moneylenders for a riba interest, as the demand for money here helps through the guarantee of gold by extracting formal money from the cycle of monetary leaks to the spending cycle, Economic, but with illegal market instruments, and thus demand for cash for purposes of transactions but for courses of income is not necessarily complete and does not lead to real economic balance.
Saleh pointed to an important event in the history of the Iraqi economy, in the sixties of the last century, was established a government bank called the Mortgage Bank / a legal and official alternative to the phenomenon of moneylenders and the whole market is illegal, which provides loans guaranteed gold guaranteed by the Bank of mortgages, To keep the gold held by the Borrower until the maturity of the Loan or to pay for interest charged by the Borrowing Bank to cover the operating costs and part of the risk of fluctuating the value of the same security of the jewelry and gold bars occupied. 
Saleh highlights the bank's cancellation at the beginning of the 1970s for unknown reasons. 
Banks remained in a semi-banking relationship with customers in the provision of services, as bank funds or personal bank vaults remained available to citizens and available for use within each bank, especially government, including Rafidain and Rashid.
The citizen can keep his precious resources and important documents in safe places with 100% safety, for a monthly or annual fee. 
The absence of this safe service cut off one of the bonds between the citizen and the bank as an entity that preserves the wealth of the society and strengthens the connection between the citizen and the bank.

Saleh called on the Iraqi Central Bank to directly study, granting vacation Iraqi bank mortgage, pledge of gold and jewelry to meet cash (which boosts bank credit and converts the semiconductor storehouse of wealth to a guarantor in the generation of power demand for money for the purposes of transactions and support economic activity. 
Promised this thing one institutional channels To eliminate the phenomenon of compactness with money equivalent, gold and other, and maximize the atmosphere of confidence between banks and citizens, to receive their gold jewelry and other valuable valuables in the vaults of banks at affordable wages.
The citizens demanded the establishment of a deposit guarantee company to reassure their bank deposits of the risks of banks 'exposure and failures; because it reduces the demand for liquid cash as a catalyst, which is an unstable, highly concerned function that is highly correlated with the interpretation of uncertainty in individuals' demand for cash in its rolling form Or quasi-money, and to prevent the entry of the cycle of income and deprivation cycle of economic activity.

Center for Economic Studies and 
Research Center

[climber7]

So RV your money instead of complaining about it! 

 

Want thing to improve? Raise the value!!! 🤦‍♂️

[Acepup]

Thanks Yota!

 

77% of my money is in strangulation as well. 

 

The Dude Abides...

[Mammaw]

I wonder how much IQD is being "hoarded" by those of us investing in it. 77%? Just saying. I wonder how they guestimate how much is floating around the world, for those waiting for the RV. 77% is a great deal, however, when you add up all of us who have it  in the bank vault box just waiting... could be...

Thank you again Yota for all of your fabulous updates.

[fnbplanet]

9 minutes ago, Mammaw said:

I wonder how much IQD is being "hoarded" by those of us investing in it. 77%? Just saying. I wonder how they guestimate how much is floating around the world, for those waiting for the RV. 77% is a great deal, however, when you add up all of us who have it  in the bank vault box just waiting... could be...

Thank you again Yota for all of your fabulous updates.

 

I think you're on to their miscalculation.

I do believe that the CBI is grossly underestimating the amount of dinar held outside of the country.  Probably means that the Iraqi citizens are much poorer than they think.  

[new york kevin]

Give them deposit insurance on all bank accounts, say up to $400,000 USD equivalent of IQD. RV the IQD and that should severely reduce the compactness. Throw in a toaster or an air conditioner ... there you go. Wisdom Mammaw.

Edited March 22, 2018 by new york kevin

[steveh12]

I lost 77% of NOTHING?? 

[jeepguy]

Haha , you guys say it all !  We all say this , and they never hear us !

[ThePeoplesChamp]

I look at this as what they are trying to gain back to their value.

[NEPatriotsFan1]

11 minutes ago, ThePeoplesChamp said:

I look at this as what they are trying to gain back to their value.

Part of the education of the masses? You could be right

[Calijim]

Ooh geee I’m down 77%. Gonna have to sell the Jet....

[Flamtap]

Or it could be that a high percentage of that 77% actually used it as toilet paper. Grin

[Laid Back]

CBI said the money supply is 48 trillion IQD..... 77% of that is 36.9 trillion IQD 

 

CBI reserves 48.9 billion dollars plus 7% growth in 2017...... $52.3 billion dollars

 

48 trillion IQD/1182 = $40.6 billion dollars

 

$52.3 Billions reserves ..... $40.6 billions money supply 

 

They have enough money to easily revalue to $1:1

 

Go  CBI

Go NMP

Go RV

Go $1:1

[colts469]

Sounds like propaganda

[Donziman]

i'm still waitting for Viet Nam to RV and drop their zero's  They have ATM's that seem to handle transactions 

every day with no problem. 

[Wiljor]

1 hour ago, Laid Back said:

CBI said the money supply is 48 trillion IQD..... 77% of that is 36.9 trillion IQD 

 

CBI reserves 48.9 billion dollars plus 7% growth in 2017...... $52.3 billion dollars

 

48 trillion IQD/1182 = $40.6 billion dollars

 

$52.3 Billions reserves ..... $40.6 billions money supply 

 

They have enough money to easily revalue to $1:1

 

Go  CBI

Go NMP

Go RV

Go $1:1

 

Brother Laid Back 

[psdon]

 

 

 

History of the dinar

h

[ChuckFinley]

1 hour ago, Laid Back said:

CBI said the money supply is 48 trillion IQD..... 77% of that is 36.9 trillion IQD 

 

CBI reserves 48.9 billion dollars plus 7% growth in 2017...... $52.3 billion dollars

 

48 trillion IQD/1182 = $40.6 billion dollars

 

$52.3 Billions reserves ..... $40.6 billions money supply 

 

They have enough money to easily revalue to $1:1

 

Go  CBI

Go NMP

Go RV

Go $1:1

Darn right they do.  Hey LB trust you are having a great Dinar Day. Sounds like they can fund our RV party.     

[psdon]

19 minutes ago, psdon said:

 

 

 

History of the dinar

h

[3n1]

very interesting article for sure , if the numbers are accurate so only 23% of the money supply is in the banking system in iraq they have probably reduced it as far as they can till the cbi makes the currency reform move imo , the iqd that has left the borders of iraq is of no concern  , that currency will be handled by central banks around the world the cbi is only concerned whats within the borders ... move off the usd, end mcp, bring true value to the iqd until then the usd will be king and they know it.... cheers dv

[GregHi]

As my Kurdish friend from Erbil used to tell me, hardly anybody uses the banks, they can’t be trusted. Everyone hoards dinars and dollars in their homes and in their cars. Trust me, people have money, they do a much better job of saving their money in their homes than we do in our banks. Use Dinar to buy the small stuff and USD to buy the more costly stuff.. BTW, he told me he has over 100 million dinar sitting in his house in Erbil.. let that sink in.. 

[Rmc10]

2 minutes ago, GregHi said:

As my Kurdish friend from Erbil used to tell me, hardly anybody uses the banks, they can’t be trusted. Everyone hoards dinars and dollars in their homes and in their cars. Trust me, people have money, they do a much better job of saving their money in their homes than we do in our banks. Use Dinar to buy the small stuff and USD to buy the more costly stuff.. BTW, he told me he has over 100 million dinar sitting in his house in Erbil.. let that sink in.. 

 

So that is $800,000???? Holy crap. Iraq needs to RV so I can be that rich too.

[3n1]

6 minutes ago, GregHi said:

As my Kurdish friend from Erbil used to tell me, hardly anybody uses the banks, they can’t be trusted. Everyone hoards dinars and dollars in their homes and in their cars. Trust me, people have money, they do a much better job of saving their money in their homes than we do in our banks. Use Dinar to buy the small stuff and USD to buy the more costly stuff.. BTW, he told me he has over 100 million dinar sitting in his house in Erbil.. let that sink in.. 

thanks gregh , i remember you saying this on another site and agree would be hard to use the banks ,if it got robbed u were sol, im thinking its better now since becoming more digital , trust takes time and incentive, bet most dont have that amount laying around but i really have no way of knowing that just a opinion the cbi knows what it has had to do ,, end mcp increase iqd value iraqis will have no choice ... still waiting 

[3n1]

thanks greghi , i remember you saying this on another site ur friend lived stateside now if memory isnt to fried .

[Half Crazy Runner]

25 minutes ago, Rmc10 said:

 

So that is $800,000???? Holy crap. Iraq needs to RV so I can be that rich too.

 

100,000,000 x .0008 = 80,000 👍🏻 That’s still a lot of money!