Central Bank’s Fee Hike Criticized as Inadequate for Current Economic Conditions
In a recent assessment, Mustafa Hantoush, a researcher specializing in financial and banking matters, expressed concerns regarding the Central Bank’s latest decision to increase fees associated with electronic payment card services. Hantoush asserted that this decision lacks thorough analysis and fails to correspond with the prevailing economic realities affecting citizens.
"The Central Bank’s choice to elevate the transaction limits for card payments, withdrawals, and deposits appears to be poorly considered," remarked Hantoush. He pointed out that liquidity in the economy is currently estimated at approximately 80 trillion dinars held in households. There are ongoing initiatives aimed at encouraging liquidity withdrawal to prevent potential crises within the local market.
Hantoush emphasized the ongoing struggle for citizens to engage with the banking system, highlighting significant efforts to incentivize such participation. He criticized the Central Bank for issuing decisions that seem disconnected from the actual economic conditions, suggesting that these choices do not align with the needs of Iraqi citizens or the overall living standards.
Recent documentation indicates that the Central Bank has raised the fees for "MasterCard" transactions, complicating financial operations for many. Notable adjustments include:
| Transaction Type | New Fee (Iraqi Dinars) | Previous Fee (Iraqi Dinars) |
|---|---|---|
| Issuance of First-Time MasterCard | 15,000 | 10,000 |
| Replacement of Expired MasterCard | 15,000 | 10,000 |
| Issuance of Dam MasterCard | 25,000 | 10,000 |
| Salary Withdrawal Fee on MasterCard | 2,000 | 1,000 |
| Cash Withdrawal from POS Devices | 2,000 per million | 1,000 per million |
These fee increases contribute to the ongoing criticism of the Central Bank’s policies, as stakeholders view them as misaligned with the pressing economic challenges faced by the public.
Hantoush’s critique serves as a call for more responsible fiscal governance, urging the Central Bank to reassess its strategies to align better with the realities of the Iraqi economy and the citizens it serves.
