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Podcast: My FX Buddies
Episode: Banks Break Trust — And Iraqi Dinar Starts Disappearing
Description: A growing liquidity crisis in Iraq may be driven by something far more basic than policy — trust. link to My FX Buddies BlogEconomic expert Salam al-Zubaidi is warning that some state-owned banks are worsening the country’s cash hoarding problem by altering profit terms on deposits, reducing returns for citizens, and violating original agreements with depositors.According to Al-Zubaidi, many depositors are reporting that profits paid by banks no longer match the conditions initially agreed upon. These unilateral changes, he says, reflect poor management decisions that undermine confidence in the public banking sector.As...