Lawmaker denies reports on intent to reverse the devaluation

Shafaq News/ A member of the Iraqi parliament finance committee on Sunday refuted media reports claiming that the Iraqi government intends to lower the exchange rate of the national currency against the US dollar to 1,200,  citing the detrimental impact of the decision on the economy.

"Changing the exchange rate is not a prerogative of the legislative body," committee member MP Jamal Kocher told Shafaq News Agency, "it is exclusive for the Iraqi ministry of finance and the Central Bank of Iraq (CBI)."

"Despite the gains Iraq has achieved from the oil prices surge, Iraq is still stuck in a 100 trillion dinars debt to domestic and international banks in addition to some others related to the Gulf war."

"The surge of oil prices itself is not sustainable. It resulted from the Russian-Ukrainian war. Once it ends, the prices will settle," he continued. 

"As a government and parliament, we failed to suppress the malignant growth of the operational budget that absorbs the majority of our resources and keeps us with a small room for the investment budget. If we adopt the former exchange rate, we will end up adding 23%  to our expenses. This will create a huge chaos in the market."

"Moreover, the government will have to compensate the companies on contract with the state. For all of the above, anything about reducing the exchange rate is just media talk to excite the Iraqi people."