Devaluating the dinar was predetermined, MP says

Shafaq News/ The Parliamentary Economic Committee said that raising the exchange rate of the 100 US dollar to 145,000 Iraqi dinars was a "prior agreement" between the political blocs, indicating that the Parliament does not have the powers to make this decision.

Committee member Ali al-lami said in a statement to Shafaq News Agency, "A previous agreement was concluded to raise the price of the dollar's exchange rate to 145,000 per 100," indicating, "this applies for the 2021 budget."

"Raising the exchange rate from 119,000 to 145,000 [per 100 dollars] inflicted the lower classes with limited resources."

Iraq's central bank increased the sale price of U.S. dollars to banks and currency exchanges to 1,460 dinars, from 1,182 dinars, seeking to compensate for a decline in oil revenue due to low crude prices.

The central bank of Iraq said the key reason behind the dinar's devaluation was to close the gap of widened 2021 budget inflation after a collapse in global oil prices.