An economic proposal to supplement Iraq's budget with huge funds

The economic expert, Mahdi Daoui, called on Saturday, November 28, 2020, to increase the benefits of private savings in banks, indicating that this strategy will return large sums of money for the benefit of the market and the state treasury and that will save money 

Dawi said in an interview with (Baghdad Today), "There are several reasons behind the reluctance of Iraqis to deposit their private savings in banks, indicating the religious reasons under the pretext of usury, and the concern over the deposit caused by lack of confidence in some banks, as well as the lack of awareness about investment from Way of deposit. "

He added that "the weakness of deposits will lead to cutting off the movement of the monetary mass because savings represent a source of liquidity for investors," pointing out that "many countries of the world rely on depositing in their economic affairs and creating balances."

He continued, "The monetary blocks saved in civilian homes are large and far from the reach of banks, so it requires attracting them by raising the interest rate or giving financial incentives to their owners."

"The markets of Asia and the Gulf states were largely dependent on savings that revived their economic situation in crises and saved them," Dawi said.

Earlier, the economic expert, Rasem al-Akidi, proposed an option that would be an alternative to external and internal borrowing and would achieve five benefits for Iraqis, most notably the continuous insurance of salaries.

Al-Aqidi said in an interview with (Baghdad Today), that "45% of Iraqi funds are hoarded in homes mainly because of the lack of confidence among citizens in government and private banks, in addition to the fact that government banks still use very traditional frameworks in depositing and withdrawing deposits that make citizens move away from depositing his money."

He added, "The financial liquidity hoarded in the homes of Iraqis can be pushed to deposit in banks by liberalizing the interest rate to mobilize savings and reach 10%, which will drive many to deposit in banks, pointing out that this cash block will give flexibility to the state in ensuring the payment of salary dues without Any problems in addition to that it will give a profit margin to civilians and reduce the repercussions of thefts and give flexibility to the movement of markets because the banks will have large liquidity for lending and financing projects."

Al-Aqidi pointed out, "Most countries in the world adopt the automatic payment method and have paid for the localization of the salaries of their employees through current accounts in banks, meaning that the process of carrying cash is very limited and payment is made through automated payment cards, as it will lead to legalizing money transfer and prevent terrorism financing and money smuggling And reduce the windows of corruption. "

 https://www.hadutta.com/Al-Raq/169654.html