Iraqi Government Ignores Parliamentary Calls for Reverting Currency Devaluation

A general view of cars at the Al-Shurja Market in Baghdad, Iraq April 10, 2019. REUTERS/Khalid al-Mousily
A general view of cars at the Al-Shurja Market in Baghdad, Iraq April 10, 2019. REUTERS/Khalid al-Mousily
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Iraqi Government Ignores Parliamentary Calls for Reverting Currency Devaluation

A general view of cars at the Al-Shurja Market in Baghdad, Iraq April 10, 2019. REUTERS/Khalid al-Mousily
A general view of cars at the Al-Shurja Market in Baghdad, Iraq April 10, 2019. REUTERS/Khalid al-Mousily

The Iraqi government announced that it is not compelled to heed parliamentary calls for reverting the national currency devaluation adopted by the Central Bank of Iraq three months ago.

Dozens of Iraqi lawmakers have started collecting signatures for a petition to restore the currency to its exchange rate of 1,200 dinars per dollar.

While the government, economists and financial experts have defended increasing the exchange rate to 1,450 dinars per dollar as part of a national reform plan, lawmakers are arguing that the move has weighed heavily on the country’s poor.

Opportunist merchants have taken advantage of the devaluation and skyrocketed the prices of basic commodities.

For that reason, lawmakers are accusing the government of failure in implementing effective policies that protect the economically destitute and regulate prices at markets.

Nevertheless, the Iraqi government is sticking to its decision and maintaining that the central bank, not parliament, has exclusive authority over the national currency’s valuation.

Iraqi Culture Minister Hasan Nazim, in an official statement on Monday, acknowledged that parliament can change the dinar’s valuation, but also said the government will not be bound by the modification.

“It is up to parliament to approve or amend the budget,” said Nazim, adding that the government has fulfilled its part concerning the general financial plan.

“The government can help facilitate matters, offer explanations and engage in negotiations regarding some issues in question,” he noted.

The Iraqi parliament has, on four different occasions, failed to pass the budget for 2021.

At first, dispute with the Kurdistan Region blocked passing the financial plan. Now, dozens of parliamentarians from different political blocs set restoring the dollar exchange rate to 1,200 dinars as a condition for passing the budget.



Iraq's Kataib Hezbollah Warns US Against Intervening in Israel-Iran Conflict

 Protesters hold Iranian flags during a protest against Israeli attacks on multiple cities across Iran, at a bridge leading to the fortified Green Zone where the US embassy is located in Baghdad, Iraq, Friday, June 13, 2025. (AP)
Protesters hold Iranian flags during a protest against Israeli attacks on multiple cities across Iran, at a bridge leading to the fortified Green Zone where the US embassy is located in Baghdad, Iraq, Friday, June 13, 2025. (AP)
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Iraq's Kataib Hezbollah Warns US Against Intervening in Israel-Iran Conflict

 Protesters hold Iranian flags during a protest against Israeli attacks on multiple cities across Iran, at a bridge leading to the fortified Green Zone where the US embassy is located in Baghdad, Iraq, Friday, June 13, 2025. (AP)
Protesters hold Iranian flags during a protest against Israeli attacks on multiple cities across Iran, at a bridge leading to the fortified Green Zone where the US embassy is located in Baghdad, Iraq, Friday, June 13, 2025. (AP)

Iran-aligned Iraqi armed group Kataib Hezbollah warned on Sunday it would resume attacks on US troops in the region if the United States intervenes in the conflict between Israel and Iran.

"We are closely monitoring the movements of the American enemy's army in the region," Kataib Hezbollah Secretary-General Abu Hussein al-Hamidawi said in a statement. "If America intervenes in the war, we will act directly against its interests and bases spread across the region without hesitation."

Founded in the aftermath of the 2003 US-led invasion of Iraq, Kataib Hezbollah is one of the elite Iraqi armed factions closest to Iran. The group, a key pillar of Iran's network of regional proxy forces, has claimed responsibility for dozens of missile and drone attacks targeting Israel and US forces in both Iraq and Syria.

Early last year, Kataib Hezbollah announced the suspension of all its military operations against US troops in the region in response to efforts by the Iraqi government.

Kataib Hezbollah is part of a coalition of Iran-aligned groups known collectively as the "Axis of Resistance" — an umbrella of hardline Shiite armed factions that have claimed more than 150 attacks on US forces in Iraq and Syria since the onset of the Gaza war about 20 months ago.

Iraq, a rare ally of both Washington and Tehran, is striving to avoid upsetting its fragile stability while focusing on rebuilding after years of conflict.