Will The Government Resort To Mandatory Deposits For Citizens? These Obstacles
Time: 2025/04/21 22:48:02 Reading: 4,920 times {Economic: Al Furat News} The head of the Iraqi Economic Alliance, Adi Al-Alawi,
warned of the major challenges facing monetary and fiscal policy in Iraq,
emphasizing that financial reform requires real tools for transformation,
most notably the independence of the central bank.
During his appearance on the "Free Talk" program on Al Furat satellite channel this evening, Al-Alawi pointed out that:
"The most prominent problem lies in the lack of effective oversight of banks," stressing that
"the Central Bank is in one valley, and the banks are in another, as the latter
do not adhere to official instructions and
operate according to special policies,
which has caused the banking system to lose real control over it." He added that
"strict oversight represents the Central Bank's best weapon in controlling banking activity,"
calling for "a move toward a cashless economy despite a deep-rooted crisis of confidence among citizens in the banking system due to past experiences, including the seizure of funds in the 1990s and the subsequent bankruptcy or failure of some banks."
Al-Alawi stressed that
"citizens cannot be forced to deposit their money in banks, even within the legal framework, because that would have negative repercussions." He pointed out that
"persuasion must be achieved through incentives," revealing that
"the number of shops and commercial companies registered with the Iraqi Chambers of Commerce is 1.2 million,
while the number of unregistered ones is 2.8 million,
bringing the total to approximately 4 million outlets." He explained that
"the mentality governing the Iraqi economy remains socialist,
despite the official transition to a market economy following the 2005 constitutional vote," suggesting that
"Iraq's budget is close to $100 billion or more, and was supposed to generate $12 billion from non-oil revenues."
Al-Alawi called for "a five-year tax freeze to
regulate corporate operations and
alleviate concerns about joining the financial system,
which could bolster the state treasury by $17 billion currently missing due to dollar-selling mechanisms."
In the same context, Al-Alawi revealed that
"the Central Bank has agreed with two international companies,
one specializing in bank mergers and the
other in private sector restructuring,
to submit a comprehensive study next July on the struggling banks."
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