Economic expert Dr. Safwan Qusay has outlined a proposal aimed at reducing the large amount of cash held outside Iraq’s banking system and encouraging a gradual shift toward electronic financial transactions.
Qusay stated that studies suggest Iraq has the ability to support and expand electronic payment and credit card systems, which could help attract part of the estimated 70 trillion Iraqi dinars currently held by citizens outside banks. Bringing this money into the banking sector would increase available liquidity and strengthen the financial system’s ability to support public spending and economic activity.
He explained that one possible approach is for banks to offer investment opportunities through the sale of shares in real estate projects or companies listed on the Iraq Stock Exchange. Such investments could encourage citizens to deposit their money in banks instead of keeping it in cash.
According to Qusay, another important step is to encourage Iraqis to purchase bonds and shares by offering attractive returns linked to productive projects. Providing reliable profits and investment incentives would help build confidence among citizens and attract more private funds into the formal financial sector.
He noted that these measures could serve as practical tools for absorbing excess cash liquidity and supporting the government’s broader efforts to expand electronic banking services and strengthen the national economy in the coming years.
