Your deposits are safe: Iraq clarifies bank withdrawals
Shafaq News/ Iraq’s Finance Ministry dismissed allegations that recent withdrawals from state-owned banks involved citizen deposits, stressing that the transactions used sovereign funds and were carried out in line with federal budgetary procedures.
The ministry clarified in a statement that the funds withdrawn from Al-Rafidain and Al-Rasheed banks were held temporarily for “operational purposes” and reallocated according to administrative and financial instructions tied to the national budget.
The statement followed accusations by several lawmakers, local media outlets, and social media figures alleging that the government had accessed trillions of dinars from public deposits to address fiscal pressures. Some critics drew parallels to foreign banking collapses, prompting concerns over Iraq’s financial stability.
“These funds are not linked to individual accounts or depositors’ savings,” the ministry stated, rejecting the comparisons as “inaccurate and misleading.” It emphasized that Iraq’s banking sector operates under a distinct legal framework and is regulated by the Central Bank, which enforces strict compliance and governance measures.
Officials reported that Al-Rafidain and Al-Rasheed remain financially stable, continuing to disburse salaries, finance public projects, and fulfill obligations to clients. Al-Rafidain Bank holds approximately 9 trillion Iraqi dinars ($6.9B) in legal reserves with the Central Bank.
A document dated April 24 confirmed Al-Rafidain held 4.277 trillion dinars ($3.3B) in unused reserves and 4.263 trillion ($3.25B) in used reserves—totaling over 8.54 trillion dinars ($6.52B)—all of which remain intact, according to the ministry.
Addressing earlier embezzlement incidents, the ministry attributed those cases to prolonged dormancy in escrow accounts, which had been exploited by corrupt networks, noting that new oversight procedures had been introduced in coordination with state banks to strengthen controls and mitigate risks.
The ministry warned that continued dissemination of false claims could damage public confidence and distort perceptions of recent economic progress, highlighting that Iraq’s fiscal reforms and improved transparency had received praise from international institutions, contributing to better credit ratings and increased investor engagement.
Reaffirming its economic policy direction, the ministry called on media professionals and social media users to verify claims and act responsibly. “All official data remains accessible for professional and public review through the ministry and banking channels.”
