Shafaq News/ Iraq's Ministry of Finance has proceeded with drafting the country's 2023 budget bill, a senior advisor said on Monday.

Financial advisor Abdul-Hasan Jamal told Iraq's National News Agency, INA, that the ministry has already begun enacting a budget bill and "will soon present a draft to the council of ministers."

"Setting a new rate for the US dollar is among the policies the government is considering. The council of ministers makes this decision, indeed. However, in the current budget bill, it is yet to be brought up," he said.

The official said that the government should commit to a deadline for submitting the bill to the parliament in order to be voted on as soon as possible.

In December 2020, Iraq's Central Bank devalued the Iraqi dinar by over 20 percent in response to a severe liquidity crisis brought on by low oil prices, a measure that sparked public outrage as the government struggles to cover its expenses.

The new rates represent a dramatic reduction from the previous official rate of 1,182 IQD. It is the first reduction in exchange rates that the Iraqi government has made in decades.

The Central Bank set the new rate for the dinar, which is pegged to the U.S. dollar, at 1,450 IQD when selling to the Iraqi Finance Ministry. The dinar will be sold to the public at 1,470 IQD and to other banks at 1,460 IQD.