Shafaq News- Baghdad

Iraq’s political leaders approved the government’s decision to raise the official US dollar exchange rate during recent meetings with Prime Minister Ali Faleh Al-Zaidi, a government source told Shafaq News on Thursday.

The country’s financial crisis dominated both individual meetings with party leaders and broader consultations involving political blocs, producing several proposals to address the budget deficit, including increasing state revenues through a higher dollar rate, according to the source.

The proposal gained political backing after leaders concluded that converting oil revenues into dinars at the revised rate would generate additional funds to help cover the shortfall.

Central Bank of Iraq (CBI) Governor Nizar Hussein informed parliament’s Finance Committee earlier on Thursday that the new official rate of 1,500 dinars per dollar was fixed and could not be changed, a parliamentary source told Shafaq News. Any revision through the budget law would require recalculating spending allocations and financial tables already prepared using the updated figure.

The committee had planned to meet with Hussein and the finance minister to review the adjustment, its economic impact, and the draft federal budget. Parliament’s presidency, however, canceled Thursday’s plenary session, which was scheduled to host both officials, leaving the matter to the committee.

On Oct. 7, the CBI introduced a new exchange-rate structure, setting the dollar at 1,500 dinars for purchases from the Finance Ministry, 1,510 for sales to banks, and 1,520 for transactions with the public.

Iraq derives most of its government revenue from oil exports paid in US dollars, which are converted into dinars to finance public spending, including salaries.

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