CBI sets new regulations on prepaid cards
The Central Bank of Iraq. Photo: INA
Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) announced on Sunday that Iraqi banks must adhere to new regulations on prepaid cards, where their credit limit is not more than 10 million Iraqi dinars (nearly 764 dollars) or its equivalent in other currencies, according to a statement cited by the Iraqi News Agency (INA).
The CBI confirmed that the limits for the monthly recharge of prepaid cards will not exceed 10 million dinars, indicating that it is not responsible for rejecting any recharge operation for cards exceeding the limit of the balance mentioned in the statement, INA reported.
The statement elaborated that prepaid cards issued before the issuance of these new regulations, and do not bear a name, remain valid until August 1, 2023, or until their balance is consumed, or whichever is earlier, but they will not be reused.
Withdrawals through ATMs are set to 300 USD per day or its equivalent in other currencies where cash withdrawals do not exceed $3,000 per month, the statement explained.
The new rules set purchases at $750 per day or its equivalent in other currencies and should not exceed the card’s monthly limit, the statement clarified.
The new regulations are issued three months after the CBI announced applying a new exchange rate of the US dollar against the Iraq dinar.
Before the new exchange rate announcement, the previous official exchange rate was 1450 dinars to one US dollar and was being exchanged in the black market at a rate of 1550 dinars.
The new exchange rate ranges between 1300 and 1320 dinars per US dollar.
In January, the exchange rate of the US dollar against the local currency reached 1610 dinars, while the official exchange rate remained at 1459 dinars per dollar, with a gap between the two exchange rates of more than 10 percent.
In late January, demonstrations took place in front of the CBI’s headquarters in the capital, Baghdad, to protest against the rising exchange rate of the US dollar.
The protesters demanded the Iraqi government urgently limit the rise in the exchange rate against the US dollar.