Today, Tuesday, the Parliamentary Finance Committee viewed the Central Bank of Iraq’s decision to boost the interest rate on bank deposits as a positive step toward rejuvenating and organizing the banking sector.
According to Moeen Al-Kadhimi, a member of the Finance Committee, “the Central Bank’s decision to increase the interest rate falls within banking reform measures and in implementation of Prime Minister Muhammad Shia’a Al-Sudani’s directive to move towards organizing and revitalizing the banking system in Iraq.”
“The decision to raise interest rates will undoubtedly encourage citizens to deposit in banks, stimulating financial movement and turning to investment projects, in addition to its positive repercussions by lowering the exchange rate of the dollar against other currencies.
According to Al-Kadhimi, “the Central Bank of Iraq is moving toward real automation in financial transactions within Iraq.”
Yesterday, Monday, during the 31st session of the Ministerial Council for the Economy, the Governor of the Central Bank of Iraq, Ali Al-Alaq, announced an increase in the interest rate for amounts deposited in banks to 7.5% in order to encourage citizens to deposit their funds in banks rather than withdrawing cash from them.