The Central Bank of Iraq issues currency worth 24 trillion Iraqi dinars during 2022 and 2023. According to data from the Central Bank of Iraq, the value of the issued cash currency increased from 78 trillion dinars at the beginning of 2022 to reach
more than 102 trillion dinars at the end of 2023, with a growth rate in the issued cash currency amounting to 9.24% during the year 2023, and a growth rate in 2022 of 20. %, an increase over the year 2019 by 58 trillion Iraqi dinars.
In contrast, the cash currency outside the banking system amounted to approximately 93 trillion Iraqi dinars, an increase of 30% compared to 2022, which is the highest volume of money available outside the banking system throughout the history of the Iraqi banking system.
According to data from the Ministry of Planning, the population of Iraq has reached In 2023, there will be approximately 43 million people, representing only 60% of them over the age of 15 years. Therefore, the number of Iraqi residents whose age is more than 15 years exceeds 26 million people, and based on the figures of the Ministry of Labor, which indicate that the size of social welfare beneficiaries is about 14 million
people, The number of adult Iraqi citizens who are not covered by social care is about 12 million people,
and according to data from the Ministry of Labor, the Ministry of Planning, and the Central Bank of Iraq, it can be concluded that the average value of each Iraqi’s 12 million people hoarding money in the Iraqi currency is approximately 7.2 million Iraqi dinars per citizen, which is higher than in 2019, which is It was approximately 4 million Iraqi dinars,
and considering that each home contains at least two adults (a man and a woman) who are not covered by social care, the rate of each Iraqi home’s hoarding of money exclusively in the Iraqi currency amounts to 15 million Iraqi dinars, which is a higher percentage than in 2019, which was approximately 8.12 million Iraqi dinars. Based on these official figures issued by official authorities, every adult Iraqi citizen over the age of 15 (man and woman) who does not benefit from social welfare was able to increase his money stored in Iraqi dinars by 1.2 million Iraqi dinars during the years 2022 and 2023, despite the decline in the value of the dinar compared to the dollar in the local market.
In addition to the rise in commodity prices and the rise in inflation rates by 4%, according to data from the Ministry of Planning,
hoarded money is defined as the value of money that a person keeps away from the banking system and does not invest it or buy his own assets, but rather keeps it away from financial institutions and in the Iraqi currency exclusively and not by working. The other.
Some believed that these numbers may be illogical and that Iraqis are suffering from a major shortage of funds and deteriorating social conditions, but what is certain is that the Central Bank of Iraq has exported more than 24 trillion Iraqi dinars in two years, and that most of these data
were hoarded by adult citizens and non-beneficiaries of social welfare.
It leads to a set of questions
– What is the need for the Central Bank of Iraq to issue more than 24 trillion Iraqi dinars within two years, representing 25% of the total cash currency issued??
– What is the strategy of the Central Bank regarding the issued cash currency and to what level will the cash currency reach, especially with the rise in the issued cash currency to more than 102 trillion Iraqi dinars?
– Why did the 22 trillion Iraqi dinars leak from the banking system and went to the easier explanation, which is “hoarding,” despite the commercial procedures that ensure the necessity of dealing with the banking sector
? – Why was the banking sector unable to attract the funds that exist outside the banking system, amounting to more than 93 trillion Iraqi dinars, despite The high interest rates offered by the Central Bank and the high interest rates on deposits offered by
Iraqi banks, which are considered among the highest interest rates compared to the existing inflation rates??
– Did the Iraqi citizen hoard more than 15 million Iraqi dinars exclusively in his home without trying to invest it, even though the Iraqi citizen’s pattern of consumption indicates his orientation toward consumption rather than his orientation toward conservatism
and hoarding, and this appears clearly through the high import bill for various goods??
– What are the methods that the Central Bank will work on to attract cash that exists outside the banking system, since the operations of issuing financial bonds, raising interest rates, and trying to reassure the public through deposit guarantee mechanisms have not been able to attract a large number of this money to the banking sector??
– As for the Ministry of Labor, is the number of beneficiaries of the social protection system really in need of this money, or is there a big play in the number of those in need of necessities that are not at all related to social protection?
All of these questions need answers to know whether the Iraqi citizen actually hoarded 15 million dinars in his home, or whether his coffers are empty and that whoever is hoarding Iraq’s money “internally or externally” has placed it in a very large safe that no one can access the exported Iraqi dinars.
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