An economist reveals the size of the currency issued by the Iraqi Central

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An economist reveals the size of the currency issued by the Iraqi Central

 

 

500 Economy 2022/09/02 11:57 Baghdad today -

Baghdad , today, Friday, the economist Manar Al-Obaidi measured the size of the currency issued by the Central Bank of Iraq.

Al-Obaidi said in a statement received (Baghdad Today) that "according to the data of the Central Bank of Iraq, the volume of cash currency issued by the bank is up to 82 trillion Iraqi dinars." He added: "On the other hand, the volume of cash in Iraqi banks does not exceed the barrier of 7 trillion Iraqi dinars only, meaning that more than 75 trillion Iraqi dinars are outside the banking system and it is very difficult to follow them and know their fate, which affects the banking sector and its contribution to the domestic product. It contributes to an increase in inflation.

 

Al-Obaidi pointed out that "there are 4 main possibilities for this cash away from the banking system, which are:

 

1 - Iraqis hoard money in their homes without entering it into the banking system . The number of those whose age exceeds the barrier of 16 is from the remaining 30 million, up to 20 million. The average hoarding of money by the Iraqi citizen is about 3.7 million Iraqi dinars.

 

2 - Funds are internal commercial transactions far from the banking system, and this includes all internal commercial businesses that deal either in cash or through informal financial institutions, and this sector may be the largest holder of these funds.

 

3 - Foreign institutions hoarding the Iraqi currency for several reasons, including the remote investment in the Iraqi dinar in the hope of a rise in its price in the future, or for reasons related to trying to control the local currency in order to pump more currency into the local market, which leads to an increase in inflation, which is a small possibility, but it is possible.

 

4- Damage to the currency , as it may be that part of the issued currency, especially from the small business, has been damaged, which means that it is practically out of the currency, but it is still calculated because there is no evidence of its damage.

 

He pointed out that "the cash currency issued since the beginning of last year 2021 increased by 19.82%, while the value of the money in the bank did not increase by more than 18%, meaning that even the issued cash currency, a large part of it does not enter the banking system," adding: "Therefore, the The prevailing belief is that the parallel market system and the internal trade market away from the banking system represent larger systems than the banking system, and that the lack of confidence in the banking system and its complexities leads the citizen to hoarding away from the banking sector and keeps the internal merchant away from banking dealings with banks and in order to return this money to the banking system for the possibility of It is necessary to prevent financial transactions and internal transfers away from the banking system, and it is necessary to increase the confidence of users in banking services and increase deposit rates to gain consumer confidence towards the important banking sector.”

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3 - Foreign institutions hoarding the Iraqi currency for several reasons, including the remote investment in the Iraqi dinar in the hope of a rise in its price in the future, or for reasons related to trying to control the local currency in order to pump more currency into the local market, which leads to an increase in inflation, which is a small possibility, but it is possible