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 Blog
Economic 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…
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