Banks Break Trust — And Iraqi Dinar Starts Disappearing

A growing liquidity crisis in Iraq may be driven by something far more basic than policy — trust. link to My FX Buddies BlogEconomic expert Salam al-Zubaidi is warning that some state-owned banks are worsening the country’s cash hoarding problem by altering profit terms on deposits, reducing returns for citizens, and violating original agreements with depositors.According to Al-Zubaidi, many depositors are reporting that profits paid by banks no longer match the conditions initially agreed upon. These unilateral changes, he says, reflect poor management decisions that undermine confidence in the public banking sector.As trust erodes, citizens are responding by keeping their money outside the banking system — at home or in businesses — rather than depositing it in banks. The result is a sharp increase in cash hoarding, which now represents one of Iraq’s most serious financial challenges.Al-Zubaidi estimates that nearly 87% of circulating cash — roughly 95 trillion dinars — remains outside formal banks, starving the system of liquidity and limiting banks’ ability to lend, finance projects, and support economic growth.If you'd like to Support the channel: ⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://cash.app/$tishwash⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠...⁠. ⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://paypal.me/tishwash⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠...⁠. ⁠This liquidity shortage, he warns, directly weakens the banking sector and slows broader economic activity.Al-Zubaidi is calling for urgent corrective steps, including honoring existing deposit agreements, restoring transparency, and rebuilding public confidence — without which financial reforms and digital banking initiatives may struggle to succeed.📌 Why trust matters more than incentives📌 How hoarding hurts lending and growth📌 What banks must do to bring cash back into the system🎧 Listen in for the full breakdown and why this issue sits at the heart of Iraq’s financial reform challenge.Thanks for Watching! Following Iraq’s Story — Don’t Give Up 💰🔥