Economic Reports Detect a Significant Increase in the Money Supply and Indicators of Rising Financial Hoarding

Analytical readings of official banking data revealed a significant increase in the money supply in Iraq over the past four years, with an increase exceeding 38%. The analyses indicated a substantial rise in the total volume of issued banknotes, leading to a notable increase in the per capita cash share. This growth was primarily concentrated in large denomination notes, while medium and small denominations recorded a decline or slight growth disproportionate to the overall increase. This unbalanced growth is considered a negative economic indicator, suggesting that funds are shifting towards hoarding outside the banking system rather than being invested and circulated within the economy. This reflects a slowdown in daily commercial activity and necessitates a comprehensive review of currency issuance mechanisms and active monetary policies.