Under pouring rain, demonstrators gather to demand reversing the Iraqi dinar's devaluation

Shafaq News/ A group of demonstrators on Wednesday gathered near the headquarters of the Central Bank of Iraq (CBI) in Baghdad under pouring rain to demand reversing the Iraqi dinar devaluation.

Rain-soaked, the demonstrators who mounted a pick-up loaded with speakers waved the Iraqi flag and chanted slogans denouncing the devaluation decision taken by former Prime Minister Mustafa al-Kadhimi's cabinet.

On Dec. 19, 2020, the Central Bank of Iraq opted to devalue the dinar against the US dollar, which dropped from 1,182 dinars to 1,450 dinars per $1. The move was prompted by the financial crisis that hit the country in the wake of the COVID-driven drop in global oil prices to less than $30 a barrel. To secure the public servants' salaries, Iraq had resorted to loans from banks and the re-deduction of bonds to the Ministry of Finance, which amounted to more than 30 trillion dinars ($20.6 billion).

The demonstrators urged incumbent Prime Minister Mohammad Shia al-Sudani to reconsider the devaluation decision and restore the former exchange rate.

Earlier, Finance Minister Taif Sami said that the country's 2023 budget bill has fixed the exchange rate of the Iraqi dinar at 1,450 to 1 US dollar.