Economist: Most of the money supply is outside banks for this reason
Economist: Most of the money supply is outside banks for this reason
7-2-2025
Information/Baghdad…
Economic researcher Diaa Abdul Karim believes that most of the money supply is now outside banks due to citizens’ loss of confidence in the Iraqi banking system.
Abdul Karim told Al-Maalouma, “There is a lack of confidence among citizens in the existing banking system, due to fears of sanctions, bank robberies, or a collapse of the political system, which would have repercussions for the banks.”
He added, “This fear is leading citizens to turn away from banks, with most of the cash stock now stored in homes. The banking system is supposed to work to withdraw this cash and transfer it to electronic and credit cards, so that spending shifts to cards instead of cash.”
He explained that “the size of the monetary mass outside banks is estimated at more than 70 trillion dinars, and that the government’s measures, although an attempt to withdraw the monetary mass, will not push citizens toward strengthening their confidence in the banking system.”
almaalomah.me
