Al-Kadhimi: The decision to increase the interest rate will activate the banking system inside Iraq, 17 OCT

 Al-Kadhimi: The decision to increase the interest rate will activate the banking system inside Iraq, 17 OCT

On Tuesday, the Parliamentary Finance Committee approved the Central Bank of Iraq’s decision to increase interest rates for bank depositors, as it will help revitalize and organize the banking system.

According to Moeen Al-Kadhimi, a member of the Finance Committee, the Central Bank’s decision to increase the interest rate is part of Iraq’s banking reform measures. This is in line with Prime Minister Muhammad Shia’a Al-Sudani’s directive to organize and revitalize the country’s banking system.

“The interest rate increase will motivate citizens to deposit their money in banks. This will boost financial activity and lead to investment in various projects. Additionally, it will positively impact reducing the exchange rate of the US dollar against the Iraqi dinar,” he said.

Al-Kadhimi stated that the Central Bank of Iraq is moving towards full automation of financial transactions within Iraq.

During the 31st session of the Ministerial Council for the Economy held yesterday on Monday, 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%. This move is aimed at encouraging citizens to deposit their money in banks rather than keeping it outside the banking system as cash.