Citizens withdrawal of their money from banks causes inflation growth

The Iraqi economy is facing a crisis after inflation indicators surged due to the Ministry of Finance borrowing 27 trillion Iraqi dinars from the Central Bank in 2020, and devaluing the dinar against the dollar to meet the financial crisis during the pandemic. According to banking specialists, the monetary mass that is outside the banks and within individuals’ reach is estimated at more than 60 trillion Iraqi dinars, resulting in a decline in its value in the Iraqi market and the development of excessive prices. Economists stated that these large funds arose as a result of citizens withering their money from banks due to the lack of trust in dealing with them, casting a shadow over the citizen’s living conditions which deteriorated below the poverty line level, in addition to the increased unemployment rate.