He observed that national financial capacity should be spent on sectors that can stabilize inflation and create job opportunities.

He observed that national financial capacity should be spent on sectors that can stabilize inflation and create job opportunities. He observed that the limited financial and investment capacity in the country should be spent on sectors that can stabilize inflation, create job opportunities and earn foreign currency. Economist Abule Mehari (Dr.) who was with Fana Broadcasting Corporation said that due to the inflation in the economy, people are seen using other options instead of saving their money in the bank or spending it on production. He also stated that the country’s investment capacity should be primarily used in sectors that stabilize inflation. He pointed out that since the profits that investors get by depositing their money in the bank are very small and the inflation rate is high, they are forced to spend their money on things that do not add value. Therefore, they stated that they would choose to invest their money in fixed assets such as cars, houses, etc. As a result, banks faced a shortage of funds and said they had difficulty lending. He pointed out that agricultural and manufacturing sectors that can help the economy in a meaningful way will not get proper financial support. They say that this will reduce the capacity of the agricultural and manufacturing sector and make the product available for the market worse. Therefore, he advised that spending the limited financial and investment capacity in the country on sectors that can stabilize inflation, create job opportunities and earn foreign currency will help to overcome the economic challenges that are being faced. By comparing the banks’ interest rate with the inflation rate, they pointed out that the solution is to adjust the interest rate and adjust the financial system in a way that is beneficial to the economy. He said that there should be strict control over the practices that aggravate the inflation.

star_border

‚Äč

Leave a Reply

Your email address will not be published. Required fields are marked *