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Banks Allowed to Raise CD Ceiling

New Title Banks Allowed to Raise CD Ceiling New Title Banks Allowed to Raise CD Ceiling

The Central Bank of Iran on Thursday said lenders can raise the ceiling when issuing certificate of deposit up to a level that doesn’t cross 20% of total long-term deposits at the end of last fiscal year (March 19). 
It allowed banks to issue CDs at 18% interest. The decision will be valid until Sept 22, according to a notice on the CBI website. 
The move comes after private banks announced in April that they would set the interest on term deposits at 15%. Before that they had leeway to raise rates up to 18%. 
Banks also decided to lower interest rates for short-term deposits to 8% down from 10%. 

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