Iraqi Government Ignores Parliamentary Calls for Reverting Currency Devaluation

Economy 04:36 PM - 2021-03-23

Photo credit: Reuters

The Iraqi government announced that it is not compelled to heed parliamentary calls for reverting the national currency devaluation adopted by the Central Bank of Iraq three months ago.

 

Dozens of Iraqi lawmakers have started collecting signatures for a petition to restore the currency to its exchange rate of 1,200 dinars per dollar.

 

While the government, economists and financial experts have defended increasing the exchange rate to 1,450 dinars per dollar as part of a national reform plan, lawmakers are arguing that the move has weighed heavily on the country’s poor.

 

Opportunist merchants have taken advantage of the devaluation and skyrocketed the prices of basic commodities.

 

For that reason, lawmakers are accusing the government of failure in implementing effective policies that protect the economically destitute and regulate prices at markets.

 

Nevertheless, the Iraqi government is sticking to its decision and maintaining that the central bank, not parliament, has exclusive authority over the national currency’s valuation.

 

Iraqi Culture Minister Hasan Nazim, in an official statement on Monday, acknowledged that parliament can change the dinar’s valuation, but also said the government will not be bound by the modification.

 

“It is up to parliament to approve or amend the budget,” said Nazim, adding that the government has fulfilled its part concerning the general financial plan.

 

“The government can help facilitate matters, offer explanations and engage in negotiations regarding some issues in question,” he noted.

 

The Iraqi parliament has, on four different occasions, failed to pass the budget for 2021.

 

At first, dispute with the Kurdistan Region blocked passing the financial plan. Now, dozens of parliamentarians from different political blocs set restoring the dollar exchange rate to 1,200 dinars as a condition for passing the budget.

 

 

PUKmedia / Asharq Al-Awsat