An economist reveals the secret behind the withdrawal of deposits from Iraqi banks.
An economist reveals the secret behind the withdrawal of deposits from Iraqi banks.
12/13/2025
An economic expert, Salah Nouri, revealed the main reasons behind the decline in deposits in Iraqi banks, attributing this to global economic developments and interest rate policies that directly affected the behavior of depositors within Iraq.
Nouri told Al-Furat News Agency that: “The US Federal Reserve’s resort to lowering interest rates during periods of economic recession leads to a decrease in returns on bank deposits, which prompts individuals and companies to withdraw their money and look for investment alternatives that achieve better returns.”
He added, “The decrease in interest rates is not in the interest of the groups that have bank deposits, as a large part of the liquidity is directed towards buying gold as a safe haven, which leads to an increase in its prices as a result of increased demand, in addition to the trend towards investing in securities markets such as stocks and bonds.”
The expert explained that “Iraq is affected by these changes due to its connection to the global economy,” noting that “the Central Bank of Iraq adopts a monetary policy based on diversifying investments, which includes holding US debt bonds, buying gold, and investing in the Euro, with the aim of reducing risks and enhancing financial stability.”
He stressed that “the decline in deposits does not necessarily reflect weakness in the banking sector, but rather expresses a change in the orientations of investors and depositors as a result of global economic conditions and monetary policies.”
alforatnews.iq
