Federal Court dismisses a case against the Iraqi dinar devaluation

Shafaq News/ Iraq's Federal Supreme Court on Monday dismissed a complaint filed against the devaluation of the Iraqi dinar, a judicial source revealed.

Earlier, the court opted to postpone the lawsuit 32/Federal to April 4.

Iraq's highest judicial body summoned the Iraqi Minister of Finance, Ali Abdul-Amir Allawi, and Governor of the Central Bank of Iraq (CBI), Mustafa Ghaleb Makhif, to a session dedicated to discuss the devaluation of the Iraqi national currency.

In December 2020, Iraq devalued its currency as the plummeting oil prices squeezed the revenues that supply more than 90% of the oil-dependent country's treasury.

The financial crisis Iraq suffered due to the coronavirus pandemic caused a decline in oil prices that caused decreasing oil revenues, altogether have caused a large deficit in the federal budget.

The OPEC member's economy has only a small manufacturing base, and almost all goods are dollar-priced imports, so a cheaper dinar instantly made normal Iraqis feel poorer without providing any benefit to the wider economy via cheaper exports.