An official from a Baghdad bank testified about the turmoil that ensued today as depositors were bombarded with demands to withdraw their money in dollars, showing that foreign currency liquidity is available, but “the intensity of requests terrified bank officials.”
After today, the dollar transfer will not be withdrawn in cash. A financial expert discusses the bank crisis in Baghdad.
According to a bank executive in Baghdad, “today, Sunday, citizens attacked all banks in Baghdad in an unprecedented manner, against the backdrop of the Central Bank’s recent decisions to adopt the dinar.”
Concerned about the amount of demands, portfolio authorities decided to delay disbursing them all at once within one day.
Today, the Central Bank cut the number of dollars provided to all institutions, and its liquidity is insufficient to satisfy the massive demands submitted.
Private banks chose to legitimize handouts to residents for fear of their dollar accounts being zeroed out, especially because there is a genuine risk that individuals may be unable to reclaim their money in the banks.