Rafidain Bank launches MasterCard service for the disbursement of pensions abroad
G-Lin at May 16, 2015 at 7:33 AM IMO they would need an internationally recognized conversion rate. 1166 would be a digital nightmare. CBI has been closed for 4 days.
They should come back on line tomorrow. I'm not pumping here, just interesting timing. Thanks jax. hi-five it seems like pensions were about 400 a month. I've read it a hundred times but now I've drawn a blank. What's new? :lol:
mike at May 16, 2015 at 8:24 AM -- Thanks G-lin and Jaxjags, I remember reading where pensions were between $300-$400 a month, depending on length of service.
I'd like to hear what OWHN has to say about this, I can see Rafidain having the ability to pay the salaries in dollars because they get paid those for the oil, but I'm not sure how they would convert dinars to GBP or the Euro without some kind of change in the status of the dinar.
Oldwazhisname Hi Mike, I wanted to be sure and get back to you and I’m sorry it took so long to respond to your request. I was traveling the last 3 days and while I saw the article and your request when it came out, it’s so darn hard to respond using a smart phone and that tiny little box they give you to write in. Lol.
Anyway, I think the community figured it out pretty well already but here is what I would contribute. No, this doesn’t necessarily denote that the iQD is going international.
As announced, it is Rafidain Bank announcing that Iraqui citizens can use their proprietary ATMs to withdraw funds of the currency of the realm in whatever county they happen to be in.
What I see is that the invitation is very select (Iraqui citizen’s using their Pension cards) to use their ATM’s only (obviously very selective locations and not an invitation to use wherever Mastercards are accepted). This does not make this anything close to an international roll-out.
“ATM” means “automated teller machine”, meaning it acts just like a teller in a branch. When people walk into a branch of Rafidain Bank and ask to cash a check drawn on their IQD denominated account and receive those funds in, say, USD, the teller enters into her computer a specific number of IQD being converted to USD (or visa versa).
The computer automatically converts the IQD into a specific amount of USD (likely at something like 1187 IQD/1 USD) and also assigns the fee charged to complete the transaction.
I think everyone would understand that. That exact same thing happens when they swipe their Pension card and ask for some USD or GBP.
The ATM computer talks to the bank’s mainframe and receives the bank’s daily conversion rate plus fees charged and then disburses the exact amount of currency requested (or allowed).
It’s also worth noting that every Rafiain Bank in countries around the world does this for their account holders that are asking for the currency of the realm in that country.
The ATMs are probably exclusively loaded with that country’s currency only. I highly doubt if Rafidain Bank’s ATMs in Great Britain spit out IQD instead of GBP.
I would virtually guarantee that they only spit out GBP (or possibly Euros). After all, that’s the main purpose of those ATMs in those countries is to give out small amounts of the local currency to their customers who come to their location and tap into their Iraqui account back home.
To me this is really about Rafidain Bank telling its customers who travel internationally to “come bank with us because we offer things other banks can’t”, sort of the same way BofA or Chase Bank would advertise. Make sense?
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CC Members Discuss Master Card Launch