Shafaq News/ Member of the Parliamentary Finance Committee, Mudar Al-Karawi, described on Thursday that the bank interest imposed by banks on their loans constitutes a heavy financial burden on borrowers, stressing that the Central Bank of Iraq and the banks will be hosted to reconsider them.
Al-Karawi told Shafaq News Agency, “The Parliamentary Finance Committee will hold a meeting at the beginning of the legislative term with the Central Bank of Iraq and the Rafidain and Al-Rashid banks to study the benefits of bank loans and the possibility of reconsidering the financial benefits and reducing the interest rate in a natural way that is compatible with the Iraqi social situation, especially for retirees.”
He added, “Loans granted to employees, retirees, and people with limited income must be reconsidered in terms of interest rates according to a mechanism adopted by the Central Bank.”
Al-Karawi considered that “the interest charged on loans constitutes a financial burden on thousands of families, especially those with limited income and retirees.”
Since government banks began launching advances and financial loans, borrowers began complaining about the high bank interest rate, and although the official interest rate on loans is 4% of the loan value, the problem is that the bank calculates this percentage multiplied by the number of years to repay the loan to reach the interest. This amounts to 50% of the loan value.
The burden of this interest varies from one loan to another, but it reaches its peak in housing loans, as some of them exceed 50% of the loan value, depending on the size of the amount and the years of repayment.
12 to 1 exchange rate. Nobody was speaking about it. I showed an article, their article, not my article, their article saying they were considering the 12 to 1 exchange rate but they would not consider it until...2026. I didn't make it up. I'm just pointing this out in an article...I believe they are going to go up in increments between now and 2026. That's just my opinion.
Community Comment: "The Iraqi people that live in Iraq can't exchange, only people abroad." Here's what would happen. We would change our dinars for the new rate but the people in Iraq would have a much much stronger purchasing power.
Question: "Can you give us more details to some of us who don't quite understand the deletion of the zeros...?"
Here's where people get pissy because there's an article everybody keeps talking about, the study of the deletion of 3-zeros. Pay attention to the wording. It doesn't say anything at all about the exchange rate. It says clear as day, the deletion of the zeros are to remove the 3-zeros off the currency, the bank note. Nothing about the rate. The bank note...It's not complicated...The worst thing that can happen for us is those suckers turn around and delete the zeros and then change the exchange rate...I'm not saying they're going to do that, but it is an option...Most likely they're going to change the exchange rate in increments...
Finance: Issuing the third bond under the name of reconstruction bonds in the amount of 2 trillion dinars
oday, Friday, the Ministry of Finance announced the launch of the third issuance of bonds worth two trillion dinars
A finance statement, a copy of which was received by NRT Arabic, stated that “the third bonds were issued under the name of reconstruction bonds for an amount of two trillion dinars, based on Budget Law No. 13 for the years (2023-2024-2025) for the period from December 31, 2023, until December 30, 2024.” “.
He explained, “The categories offered for these bonds were divided into a bond of 500 thousand Iraqi dinars with an annual interest of 6% for a period of two years, and a bond of one million dinars with an annual interest of 8% for a period of four years.”
The Finance Ministry called on “those wishing to purchase from the public to submit purchase requests through licensed banks, and we call on investors and citizens to take advantage of the offer and take the initiative to benefit from this investment opportunity, as the size of the issue will be very limited, knowing that these bonds are tradable in the Iraq Stock Exchange.”
[via WiserNow] ...Iraq has already been doing exchanges at their new rate in the country of Iraq. They were told that on the first...of January, the USD or Fiat dollar is dead. It is no longer usable – it’s gone - they want them to completely transition to the new lower denominations of the Iraqi dinar and those are in the ATMs. They're in banks and in shops in Iraq. They're in the businesses and shops.
I got a call that said the...US Treasury was going to send out an email to all banks and redemption centers ...when we talk to people like the southeastern regional manager of Wells Fargo and certain other people they say everything is done...everything's done. We don't know why it hasn't happened. And when you get that from your top banking sources, that you really haven't heard what that email was - it tends to make us believe - Yes, we're super close, but we still don't know exactly when it's gonna go...
Today, Friday, the Central Bank of Iraq revealed anticipated measures and decisions to support the dinar and maintain its strength against other currencies, and other measures that will positively affect the exchange rate, while indicating that it has taken measures in the field of gradually ending the electronic platform.
Assistant Director General of the Investment Department at the Central Bank of Iraq, Muhammad Younis, told the official agency, “The Central Bank will monitor and follow up on all banks and customer complaints that are received by it if the banks are forced to convert customer accounts to the US dollar,” stressing that, “ This issue is easy to follow and monitor, and banks that do not adhere to this decision will be held accountable.”
Younis added, “This decision and the decisions that will follow it in the coming days are all in the interest of supporting the Iraqi dinar and increasing confidence in it,” noting that “what confirms the strength of the dinar and the public’s confidence in it is the continuation of the Central Bank of Iraq and its failure to fulfill any of its various needs.” Sectors, as it now finances the commerce, electronic payment, travel and other sectors.”
He pointed out, “In the coming days, there will be more measures in the field of meeting all market needs, supporting the Iraqi dinar and maintaining its strength against other currencies,” noting that “the Central Bank, as part of its new procedures, prevented banks from automatically converting customer accounts in the dollar currency to the Iraqi dinar.” Without the customer’s consent, customers were allowed to open accounts in different currencies.”
Younis noted, “What is new in updating the procedures is that it allowed companies that have contracts with the state to receive their incoming transfers, including workers’ salaries, as well as ongoing contracts for grants and loans in accordance with the Council of Ministers,” adding, “The other point is also in this decision.” What is new is allowing banks to agree with their customers to bring their incoming remittances in cash to Iraq.
He stressed, “These measures will positively affect the exchange rate in the market, will increase the supply of the dollar, and contribute to serving and supporting important sectors in the economy, including the exporting sectors and the sector of companies operating in the government field and in the field of infrastructure development and strategic projects, in addition to supporting Civil society organizations that contribute to the humanitarian and charitable field in Iraq.
Younis explained, “The main goal behind this update or these instructions is to expand the largest possible segment of people to obtain the cash dollar by meeting their current needs for this dollar, as these instructions expanded the number of entities that benefit from the cash dollar, including civil society organizations, and supported these measures.” An important segment of the economy is the exporters’ sector, as it allowed them to obtain 40 percent of the remittances received as a result of their exports and receive them in cash.”
He pointed out, “The decision clearly specified the mechanisms for its implementation by banks, and focused on the issue of incoming transfers, as it allows some groups to receive their incoming transfers in cash,” explaining that “this decision relates to incoming transfers and not the cash sale of dollars to travelers, as the cash sale to travelers will continue.” As is the case now, in addition to meeting the needs of customers and companies through this decision, and thus it will reflect positively on the exchange rate in the coming days.”
Younis stressed, “There are no restrictions applied to banks in the field of money transfer, because there are procedures in the field of gradually ending the Central Bank of Iraq platform by supporting interests to open accounts in foreign banks abroad, and the role of the Central Bank is limited to enhancing these balances.” And follow up on transfers.
He concluded by saying, “There are no restrictions on money transfers in different currencies within the banking system in foreign currencies. Rather, this decision relates to the cash dollar (cash withdrawal).”
