Cash funds outside the banking system in Iraq exceed 90 trillion dinars in 2023

Future of Iraqi Dinar value

Click herThe Future Iraq Foundation for Economic Studies and Consultations stated in a report that the value of the local cash currency circulating outside the banking system in Iraq has exceeded 90 trillion dinars during the year 2023.
The report indicated that the value of the issued cash currency increased by 9.24% during the year, rising from 78 trillion dinars at the beginning of 2022 to more than 102 trillion dinars at the end of 2023.  
The institution confirmed that this increase came despite the decline in the value of the Iraqi dinar against the dollar in the local market, in addition to the rise in commodity prices and an increase in inflation rates by 4%, according to data from the Ministry of Planning.

The report showed that the cash currency outside the banking system amounted to about 93 trillion Iraqi dinars, an increase of 30% compared to 2022, which is the highest percentage of the volume of funds circulating outside the banking system in the history of Iraq. According to the data, about 43 million people will live in Iraq in 2023, and the number of adults who are not covered by social care exceeds 26 million people, which means that the rate of each Iraqi’s hoarding of the Iraqi currency reaches about 7.2 million dinars.

The institution concluded that the rate of hoarding in each Iraqi home reaches 15 million Iraqi dinars, which is a higher percentage than in 2019, which indicates that Iraqis keep large amounts of money outside the banking system. In conclusion, the report indicated that these numbers may seem illogical in light of the economic and social challenges facing Iraq, but they reflect the trends of the Central Bank of Iraq and the increase in the quantities of cash currency exported in the market.


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