Iraqi banks undertake overdue reforms
Iraqi banks have undertaken reforms, coinciding with the Iraqi government's measures to reform the economy.
The Central Bank of Iraq announced in a statement Dec. 19 the devaluation of the Iraqi dinar to 1,450 to help reduce the country’s fiscal deficit in the state budget for 2021 from 70 trillion to nearly 30 trillion dinars.
Simultaneously, Iraqi banks have undertaken additional measures to optimize the Iraqi economy. In the past weeks, government banks intensified calls for citizens to deposit their money in their bank branches instead of hoarding it at home.
Local media published calls by Rasheed Bank and Rafidain Bank along with the interest rates they pay for deposited money.
In less than a week, state-owned Rafidain Bank raised the interest rate on deposited money from 4% to 5% so as to encourage people to deposit funds in Iraqi branches.
