Iraq’s bank deposits drop by over $7B in 2024
Shafaq News/ Iraq's banking sector total deposits declined by 9% in 2024, according to a report released on Thursday by the Iraq Future Foundation for economic studies and consultations.
The report indicated that deposit values fell from 133.5 trillion Iraqi dinars at the end of 2023 to 123.5 trillion dinars, marking a loss of 10 trillion dinars ($7.6 billion.)
Breaking down the decline, the report highlighted a significant 14% drop in government sector deposits, which decreased from 47.3 to 42.8 trillion dinars, attributed to reduced government revenues or shifts in liquidity management policies.
Deposits from public institutions fell by 7.4%, sliding from 29.6 to 27.4 trillion dinars.
The private sector also saw a 6.52% decrease in deposits, from 56.5 to 53.2 trillion dinars, potentially reflecting waning confidence in the banking system.
By deposit type, current accounts recorded a sharp decline, falling 11.6% from 107.5 to 97.4 trillion dinars, posing the most significant impact given their dominant share of total deposits.
Fixed-term deposits remained relatively stable, edging down slightly from 9.67 to 9.62 trillion dinars.
In contrast to the overall downward trend, savings deposits increased marginally by 0.7%, rising from 16.3 to 16.43 trillion dinars, suggesting a modest shift toward savings.
*1 IQD = 0.000773147 USD
