Shafaq News- Baghdad

Hoqooq (Rights) parliamentary bloc leader Su’ud Al-Saadi filed a formal challenge with Iraq’s Federal Supreme Court on Sunday against the government’s decision to raise the US dollar exchange rate.

Al-Saadi told Shafaq News that the appeal targets Cabinet Resolution No. 544, which approved the exchange-rate adjustment. He said the court had accepted the filing and would set a hearing date in the coming days.

The Cabinet approved the measure on October 6 following an emergency recommendation from the finance minister and Central Bank of Iraq (CBI) governor. Under the new structure, the dollar is priced at 1,500 dinars for purchases from the Finance Ministry, 1,510 for sales to banks and 1,520 for the public.

Read more: Iraqi dinar devaluation sparks backlash from blocs inside the cabinet

The change raised the end-user rate by 20,000 dinars per $100 from the previous 132,000 dinars. The parallel-market rate had climbed to around 165,000 dinars per $100 ahead of the decision amid speculation over a possible devaluation.

Al-Saadi’s court challenge follows his bloc’s earlier call for Iraqis affected by the devaluation to contest the decision and for parliament to hold a special session on the rate.

On October 8, Prime Minister Ali Al-Zaidi told parliament that the government had faced three alternatives: compulsory savings, paying salaries every 45 days or taking on additional debt. He said public debt exceeded 208 trillion dinars (about $136.8B) and that the government needed around 10 trillion dinars (about $6.58B) each month.

Parliament Speaker Haibet Al-Halbousi said the exchange-rate decision would not be reversed and had the backing of political bloc leaders.