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Iraqis lose 77% of the value of their money in the siege
- One day ago
50
Shatha Khalil *
Economism is defined as "holding money and locking it out of 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 spends 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 Fahmy, "Securing internal resources and mobilizing in the case of savings is very important, and this poses a serious risk and concern for the funds in the case of hoarding"
He pointed out that "the state of compactness means there is a lack of confidence in the banking sector in attracting deposits and this is a major challenge because it is not only a financial and administrative challenge, but also harms the economic reality and the security reality and the political reality.
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 pointed out that there is high demand for the dollar because of instability and can not be restrained pointing out that previously the central bank before 2014 covers all the quantity and now we do not cover the amount required by importers or those with assets or foreign transfers and this pressure, the economy
The citizens' lack of confidence in banks is due to the following:
• The government does not pay the dues of the private sector, contractors and farmers, despite the passage of years of 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 escaped from 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 an interest rate, 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 cycles 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 jewelery 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 conduct a study, grant a license to the Iraqi Bank of Mortgages, to mortgage gold and jewelry for cash money (which boosts bank credit and turns quasi-fortified wealth into a guarantor in generating demand for money for purposes of transactions and supporting economic activity.
This promised one of the institutional channels in the elimination of the phenomenon of compactness like money and other, and maximize the atmosphere of confidence between banks and citizens, to receive their gold jewelry and other valuable valuables in the vaults at the banks for soft 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.
Iraqis lose 77% of the value of their money in the siege
- One day ago
50
Shatha Khalil *
Economism is defined as "holding money and locking it out of 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 spends 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 Fahmy, "Securing internal resources and mobilizing in the case of savings is very important, and this poses a serious risk and concern for the funds in the case of hoarding"
He pointed out that "the state of compactness means there is a lack of confidence in the banking sector in attracting deposits and this is a major challenge because it is not only a financial and administrative challenge, but also harms the economic reality and the security reality and the political reality.
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 pointed out that there is high demand for the dollar because of instability and can not be restrained pointing out that previously the central bank before 2014 covers all the quantity and now we do not cover the amount required by importers or those with assets or foreign transfers and this pressure, the economy
The citizens' lack of confidence in banks is due to the following:
• The government does not pay the dues of the private sector, contractors and farmers, despite the passage of years of 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 escaped from 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 an interest rate, 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 cycles 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 jewelery 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 conduct a study, grant a license to the Iraqi Bank of Mortgages, to mortgage gold and jewelry for cash money (which boosts bank credit and turns quasi-fortified wealth into a guarantor in generating demand for money for purposes of transactions and supporting economic activity.
This promised one of the institutional channels in the elimination of the phenomenon of compactness like money and other, and maximize the atmosphere of confidence between banks and citizens, to receive their gold jewelry and other valuable valuables in the vaults at the banks for soft 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.
