TBI Director Warns: 85% of Iraq’s Cash Supply Outside Banks Threatens Liquidity Cycle and Salary Payments
Ali Abdul Ridha Al-Allawi, Director of the Trade Bank of Iraq (TBI), revealed that more than 85% of Iraq’s cash supply is held outside the banking system, largely kept in citizens’ homes, warning that this situation disrupts the country’s liquidity cycle and affects the smooth availability of funds needed for salary payments.
Speaking during a discussion session with journalists, Al-Allawi explained that the economy operates through an interconnected financial cycle, beginning with the injection of liquidity through financial institutions and extending to salary payments and broader spending. Any disruption in one part of this chain, he said, could hinder the entire process.
He attributed the low level of public confidence in Iraq’s banking sector to the accumulation of political and economic crises over the past several decades.
Regarding financial transactions with Iran amid international sanctions, Al-Allawi said the issue is managed by several government entities, adding that TBI would continue to play a supporting role in this process.
He also revealed that the bank has developed a roadmap for modernization, with the first results expected to become visible over the coming months. The plan includes further development of TBI’s internet banking services, which remain at an early stage compared with those available in other countries across the region.