The decision of the Finance Committee in the House of Representatives, Ahmed Al-Saffar, confirmed that determining the exchange rate of the dollar against the Iraqi dinar is the task of the Central Bank, while indicating the position of Parliament on this policy.
In a televised interview, Ahmed Al-Saffar said, “Determining the exchange rate of the dollar is the task of the central bank, and it is the only one that supervises the monetary system, the monetary mass, and the exchange rate, and we, as Parliament, have no right to interfere in the price.”
Al-Saffar added, “Changing the price according to economic theory is politically feasible, but with conditions including the availability of a productive apparatus, agriculture and an active industry.”
The Iraqi local markets in Baghdad and other provinces were disturbed, after the devaluation of the Iraqi currency against the dollar in the 2021 budget bill, which included the new exchange rate.
According to parliamentary statements, the devaluation of the dinar against the dollar comes as an organized government plan to reduce the fiscal deficit and achieve an abundance of revenues.
Although the decision sparked a wave of anger in the Iraqi street, Prime Minister Mustafa Al-Kazemi defended his government’s move and said that he had two options, “either the collapse of the system and entering into chaos, or we enter into a Caesarean section for reform.”