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The beginning of “drying up” liquidity from the hands of the Iraqis.. The destruction of “surplus” currency and deposits in banks are the highest historically
Economy 04-04-2024 | 04:07
30,007 views
Alsumaria News - Special
Over the past years, all of the economic problems in Iraq internally, whether with regard to
corruption, the
dollar, the
rise in real estate prices, etc., as well as
inflation,
have been directly linked to the
high volume of liquidity and the
printing of money by the Central Bank, as well as the
high volume of cash in the hands of the street, citizens or... Capital owners, away from Iraqi banks.
Recently, trends and numbers indicate that a reverse process has begun to take place in Iraq, which consists of
reducing cash and
getting rid of “surplus printed money”
without printing new money in front of it, and
increasing banks’ possession of this liquidity instead of leaving it in the hands of the street and citizens, where it can be said that the
government and the banking sector And finance in general in Iraq began to “nibble” the existing liquidity and “dry it out” from the hands of the people.
In a special review conducted by Al-Sumaria News, it becomes clear that the currency printed or issued in Iraq until February 2024 is the lowest in 8 months, that is, since May 2023, as the currency printed in Iraq reached 99.2 trillion dinars, and
the highest historical level reached by the printed currency was recorded. In November 2023, it amounted to 102.6 trillion dinars.
This approach represents getting rid of the currency and not only stopping its printing, but also “destroying it.”
This matter does not seem “absurd,” but rather
it is an approach committed by Iraq to reform liquidity management and with recommendations from the International Monetary Fund, which, in its statement last February, praised “ Efforts made by the Central Bank of Iraq aimed at getting rid of excess liquidity!
While the currency printed until February 2024 is the lowest in 8 months, there is a “historical” record corresponding to it, as the data reviewed by Al-Sumaria News show that until January 2024, the currency in banks amounted to 9.1 trillion dinars, and this number is the highest ever in history. Banks after they ranged between 6, 7 and 8 trillion over the past months and years.
The expected effects of this trend are not known, but
specialists believe that the data will continue in one direction, which is to reduce printed cash and liquidity, and
the banks’ attempt to hold on to liquidity and not leave it in the hands of citizens, and
all of these indicators will ultimately lead to reducing inflation in general and reducing the “enormous” purchasing power among groups. Great Iraqi.
https://www.alsumaria.tv/news/economy/485612/بدء-تنشيف-السيولة-من-يد-العراقيين-اتلاف-فائض-العملة-والإيداع-بالمصارف
Economy 04-04-2024 | 04:07
30,007 views
Alsumaria News - Special
Over the past years, all of the economic problems in Iraq internally, whether with regard to
corruption, the
dollar, the
rise in real estate prices, etc., as well as
inflation,
have been directly linked to the
high volume of liquidity and the
printing of money by the Central Bank, as well as the
high volume of cash in the hands of the street, citizens or... Capital owners, away from Iraqi banks.
Recently, trends and numbers indicate that a reverse process has begun to take place in Iraq, which consists of
reducing cash and
getting rid of “surplus printed money”
without printing new money in front of it, and
increasing banks’ possession of this liquidity instead of leaving it in the hands of the street and citizens, where it can be said that the
government and the banking sector And finance in general in Iraq began to “nibble” the existing liquidity and “dry it out” from the hands of the people.
In a special review conducted by Al-Sumaria News, it becomes clear that the currency printed or issued in Iraq until February 2024 is the lowest in 8 months, that is, since May 2023, as the currency printed in Iraq reached 99.2 trillion dinars, and
the highest historical level reached by the printed currency was recorded. In November 2023, it amounted to 102.6 trillion dinars.
This approach represents getting rid of the currency and not only stopping its printing, but also “destroying it.”
This matter does not seem “absurd,” but rather
it is an approach committed by Iraq to reform liquidity management and with recommendations from the International Monetary Fund, which, in its statement last February, praised “ Efforts made by the Central Bank of Iraq aimed at getting rid of excess liquidity!
While the currency printed until February 2024 is the lowest in 8 months, there is a “historical” record corresponding to it, as the data reviewed by Al-Sumaria News show that until January 2024, the currency in banks amounted to 9.1 trillion dinars, and this number is the highest ever in history. Banks after they ranged between 6, 7 and 8 trillion over the past months and years.
The expected effects of this trend are not known, but
specialists believe that the data will continue in one direction, which is to reduce printed cash and liquidity, and
the banks’ attempt to hold on to liquidity and not leave it in the hands of citizens, and
all of these indicators will ultimately lead to reducing inflation in general and reducing the “enormous” purchasing power among groups. Great Iraqi.
https://www.alsumaria.tv/news/economy/485612/بدء-تنشيف-السيولة-من-يد-العراقيين-اتلاف-فائض-العملة-والإيداع-بالمصارف
