Home
Experts urge use of 'dormant funds' in construction and investment
Economic 07/28/2024
[You must be registered and logged in to see this image.]
Baghdad: Haider Falih Al-Rubaie
Economic experts stressed the need for government and private banks to adopt methods that would absorb the idle and hoarded cash mass of citizens, stressing that this process would stimulate many sectors that depend on financial investments, while they suggested raising the interest rate granted to citizens in order to attract this money, which is estimated at about 85% of the issued currency.
According to financial experts, the "banking temptation" policy represents a basic element of attraction for the hoarded money of citizens, stressing the need for banks to adopt methods that would create a state of trust with depositors, and reassure them of the possibility of withdrawing part or all of the amount when they need it and in a smooth manner.
The Prime Minister's Financial Advisor, Dr. Mazhar Mohammed Saleh, suggested two quick ways to benefit from the public's cash surplus, especially for the purposes of development funds. The first is to deal with borrowing bonds, which are issued by the Central Bank or the government. They are tradable, can be bought and sold, and can extinguish debts and bear annual interest, including the issuance of Islamic bonds as a hybrid financial instrument. The second way is to spread borrowing and depositing through mobile phone banks within the broad uses of electronic banking.
Saleh stressed the need for banks to seek to reverse the hoarding equation represented by the public retaining about 85% of the issued currency, which still constitutes hoarded balances outside the banking system and are considered dormant, ineffective balances, and do not provide any important service to the national economy, and that some of them operate with very high usurious borrowing risks?
In order to exploit the cash mass hoarded by citizens, financial and banking expert, Abdul Rahman Al-Shaikhli, during his interview with "Al-Sabah", believes that the government and private banking system must exert more efforts to exploit this wealth, indicating that "there is more than one way to absorb the cash mass hoarded outside the banking channels, the first of which is to work diligently to restore confidence between the citizen and the banking institution and create a state of reassurance among the depositor that he is able to recover his money partially or completely when he needs it smoothly, which makes him convinced to invest it in bank credits that achieve
guaranteed profits.
Al-Shaikhli also stressed the importance of "increasing interest on deposits and diversifying them, as a type of enticement method with the aim of absorbing the hoarded money, and that it be granted to him monthly or quarterly and not necessarily annually as is the custom for fixed deposits, indicating that this step can entice the depositor to leave his money invested within the banking channels that achieve a fixed and stable return."
The expert Al-Shaikhli stressed the importance of cooperation between government and private banks to issue guaranteed treasury bonds (that can be traded in the stock market) with attractive interest rates that contribute to investing the citizens' accumulated funds in major projects that the government contributes to completing and supervising and monitoring their implementation without exploiting them for corruption, thus enhancing his patriotism.
In line with the calls of experts and specialists, the Ministry of Finance announced the launch of a new issue of government (Injaz) bonds (second issue) for public subscription, worth (1.5) trillion and five hundred billion Iraqi dinars.
In turn, the expert and specialist in international economics, Dr. Nawar Al-Saadi, pointed out during his interview with "Al-Sabah" that "the most prominent challenges facing the absorption of the hoarded cash mass of citizens is the lack of confidence of citizens in the banking system, and this problem hinders efforts to absorb the hoarded cash mass."
The expert Al-Saadi believes that in order to enhance confidence in the banking system, transparency and governance in the financial sector must be improved, and political reforms must be implemented to enhance public confidence in the government and institutions, stressing that "one of the main ways to absorb liquidity from citizens is to raise the interest rate, and then the attractiveness of saving in banks will increase, which will prompt citizens to deposit their money instead of hoarding it," explaining that despite the positives of raising the interest rate, this should be done with caution, as it may negatively affect investment and economic growth.
In addition, the government and banks can issue financial instruments such as bonds or savings certificates that provide attractive returns for investors. These instruments can be attractive to citizens who prefer stable and secure returns.
[You must be registered and logged in to see this link.]
» utube 11/5/24 MM&C MM&C News Report-ICC-Investors-RIYADA BANK-Port of Faw-3 Presidents Seated-Removi
» utube 11/2/24 MM&C Report-Iraq 3 Presidents-National-Constitutional Entitlements-Open Market Operati
» With the document.. Cancellation of the suspension of the agricultural plan in the Iraqi "breadbaske
» Economist criticizes government's neglect of tourism, agriculture and dependence on oil
» Al-Sudani: The development path will be an artery linking most countries in the region
» Parliamentary bloc: Popular Mobilization Forces retirement law ready for voting
» Al-Kadhimi: Financial costs and government insistence will force Americans to withdraw militarily
» Parliamentary Committee Rejects Inclusion of Public Money Thieves in Amnesty Decision
» Al-Mashhadani directs to resolve differences over draft laws before submitting them to Parliament
» Emaar: Launching the housing loan application form in early 2025
» Parliamentary Health: The environment needs 2.6 billion dinars to operate air purification stations
» Al-Sudani: We faced major challenges in implementing the “Greater Iraq” project
» Iraqi Ports reveals in numbers the percentage of completion in the Grand Faw Port projects
» More than $300 million.. Central Bank sales increase in today's auction
» Faw Port prepares to receive the first commercial ship
» Service Effort of {Sabah}: Completing all projects with high implementation rates before the end of
» Government agency for digital transformation
» Parliamentary Committee: Final version of the National Day Law
» Al-Imar to {Sabah}: Launching the housing loan application form at the beginning of 2025
» Iraq looks forward to a new phase after Trump's victory
» Training workshops to help the unemployed in Kirkuk
» Nineveh to open oncology hospital in early 2025
» Service Effort: Completion of all projects that exceeded 80% completion rates.
» Parliamentary Health: The environment needs 2.6 billion dinars to operate air purification stations
» Transportation: 20 public transport lines to be launched this month
» Al-Emaar to {Al-Sabah}: Launching the housing loan application form in early 2025
» The most prominent achievements of Al-Sudani's government in the youth care and sports sector files
» Planning: The percentage of women in the workforce does not exceed 13 percent
» Baghdad is the capital of Arab tourism
» Al-Sudani: The Grand Faw Port is Iraq's largest project
» Parliamentary Foreign Affairs Committee to NINA: This is what is delaying the selection of the list
» Parliamentary lawsuit to challenge the contract with the International Finance Corporation
» Minister of Justice issues directive regarding foreign lawsuits file
» How will Trump's victory affect Iraq?
» State Administration Coalition holds meeting with Al-Sudani and Al-Mashhadani in attendance
» Formation of the regional government.. How much influence does the new US administration have on the
» Al-Sudani announces the receipt of the five berths that represent the backbone of Al-Faw Port
» Despite its global rise... Iraqi oil returns to the red zone
» Iraq Counts on the Grand Faw Port, and an Expert Says: It Will Change the Economy - Urgent
» Rafidain Bank expands comprehensive banking system to include 48 branches
» "The reference" indicates the seriousness of the situation... and the political forces "shuffle the
» Criminal wanted by Iraqi judiciary.. Rashid and Al-Sudani’s congratulations to Trump spark widesprea
» State Administration Coalition holds meeting with Al-Sudani and Al-Mashhadani in attendance
» Parliamentary Security and Defense: There are “fake” security companies run by “suspicious” figures
» Fares Issa meets the Czech Ambassador to Iraq
» Al-Sudani issues several directives to lift the ban on Iraqi Airways
» Makkia: Iraq is heading towards a major investment marathon
» Al-Fatlawi: The population census enumeration and numbering process exceeded 98% throughout Iraq
» Ministerial Council: Talk of using Iraqi territory as a launching pad for false pretext attacks
» Türkiye: Our relationship with Iraq is witnessing positive development and we are keen to strengthen
» Basra Gas Company announces the return of production and export operations to normal
» Former Minister Reveals “Exciting” Details Concerning Leaks... What’s the Story of the Electronic Fl
» Al-Sudani receives the five berths of Al-Faw Port from the Korean company
» Implementation of judicial memoranda of understanding on the table of the meeting between Faeq Zidan
» List of dollar prices in Iraqi markets today, Thursday
» It will include smaller areas and eliminate the sponsor.. Insistence on legislating the “Housing Fun
» Prime Minister: We are facing a new Iraq and the path of development will be an artery linking most
» Completion rates have increased fivefold in two years.. “Amazing” information and scenes from Al-Faw
» Central Bank: Importance of cooperation and money transfer to facilitate trade with Azerbaijan
» Iraqi Businesswomen Council: A safe environment to support women’s entrepreneurship and develop skil
» Economist: The value of the dinar will decrease and the financial deficit will increase
» American website: Iraq's budget suffers from a deficit of $49.3 billion
» Good news for journalists and writers.. The "financial grant" will be launched on this date
» Iraq is the third Arab country in gold reserves
» Wanted by Iraqi judiciary.. An "Iraqi-American" diplomatic crisis with Trump's victory in the US pre
» Central Bank of Iraq sells more than $280 million in auction today
» Trump's victory... will it be a lifeline from the "judicial guillotine"?
» After winning the presidential race, Trump talks about a “strong mandate”
» Al-Sudani chairs meeting with IATA delegation
» Central Bank Governor stresses need for cooperation to facilitate trade with Azerbaijan
» utube 11/6/24 Donald Trump's full victory speech
» Deep State Confronted by Trump.. Will Elon Musk Lead America, the World and “Mars”?
» Alsumaria Noon Bulletin Files: Trump's Victory and Objections to the General Amnesty Law
» Parliamentary bloc explains reasons for demanding extension of legislative term
» Al-Sudani discusses with an international delegation lifting the ban on Iraqi Airways
» Axios: Washington warned Baghdad that Israel may attack Iraq if it does not prevent the Iranian atta
» Trump declares victory in US elections: I will not start wars, but I will end them
» Parliamentary Foreign Affairs: Trump is wanted by the Iraqi judiciary, but the country's interest co
» "Al-Eqtisad News" publishes the full decisions of the Cabinet session
» Bitcoin Hits All-Time High in Early Trading
» Iraq tops the list of countries importing Arab products related to construction activity
» 2025 Strong national economy and sound banks
» Government stresses the need to secure petroleum derivatives for energy production
» Anbar: The second phase of the electricity connection with Jordan has reached its end
» Iraq's gold holdings rise to more than 152.5 tons
» Al-Alaq stresses to Azerbaijani ambassador the importance of cooperation in transferring money to fa
» 7 decisions on the general population census
» The world awaits the new US president
» Sudanese demands stopping the Zionist aggression
» Wasit: Distribution of seeds among farmers with a support rate of 70 percent
» Trade: Central markets {hypermarkets} to officially open in 2025
» Civil Service Council: Controls for appointing land donors
» Baghdad Municipality: Measures to avoid damage from oil spills in the Tigris
» The Board of Trustees discusses a number of topics related to developing the work of the media netwo
» Sovereign guarantees boost labor market
» Mazhar Saleh: No impact of oil price drop on operating budget
» Iraq's share in the IMF
» Trump's "Historic" Victory: World Leaders Congratulate Him