Wednesday, August 13, 2025

💥 Iraqi Banking Crisis: 10 Banks Fail to Return Deposits, 80% of Currency Held Outside Banks

💥 Iraqi Banking Crisis: 10 Banks Fail to Return Deposits, 80% of Currency Held Outside Banks

(August 12, 2025 | Baghdad Today)


⚠️ Key Points:

  • 80% of Currency Outside Banks:
    Central Bank Governor Ali Al-Alaq confirms that about 80% of Iraqi currency is kept outside banks, mostly in homes, due to low public confidence in the banking system.

  • Banking Reform Plan 2025:
    The Central Bank’s 2025 reform document aims to modernize Iraqi banks to meet international standardsand attract global partnerships.

  • Partial Resistance, Major Collapse:
    Only 10% of banks have expressed reservations about the reform plan.
    Meanwhile, 10 banks face liquidation because they cannot return customer deposits

    .

  • Strategic Reform Effort:
    The reform is seen as a critical step to rebuild trust and fix long-standing issues in the banking sector.


Source: Baghdad Today


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