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.



Hamas Sources: Gaza Ceasefire Talks Ongoing Despite Israeli Obstacles

Palestinians in Gaza City wait to receive food aid on Monday (AFP)
Palestinians in Gaza City wait to receive food aid on Monday (AFP)
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Hamas Sources: Gaza Ceasefire Talks Ongoing Despite Israeli Obstacles

Palestinians in Gaza City wait to receive food aid on Monday (AFP)
Palestinians in Gaza City wait to receive food aid on Monday (AFP)

Despite accusations from Hamas that Israel is deliberately placing hurdles in the way of indirect negotiations in Doha aimed at securing a two-month ceasefire, sources within the movement confirmed to Asharq Al-Awsat that there are ongoing consultations.

Hamas sources said Israel continues to obstruct progress in the Qatar-hosted negotiations, which have been underway for over a week with only limited breakthroughs.

“Each time there is partial progress on some provisions, the Israeli delegation delays discussions on other points and refuses to engage until it receives fresh instructions from officials in Tel Aviv,” the sources explained.

Palestinian negotiators believe this approach is designed to buy time and apply pressure on the Palestinian factions’ team, while ultimately blaming them for any failure of the talks, which are dragging on due to Israel’s contradictory positions.

Humanitarian Aid a Major Sticking Point

The most significant obstacle, according to Hamas, remains Israel’s refusal to commit to a comprehensive withdrawal plan, as well as its insistence on maintaining the current aid delivery mechanism, which Hamas describes as a “death trap” for civilians in Gaza.

The sources said Israel has agreed in principle to allow aid into areas it withdraws from through international organizations. However, the Palestinian delegation is demanding that assistance be delivered under the humanitarian protocol negotiated in January.

This protocol is broader than Israel’s proposals and includes not only food and medical supplies, but also construction materials, equipment to repair hospitals and schools, and goods for the private sector to sell in local markets.

Israel has informed mediators that it reached an understanding with the European Union to allow 500 trucks per day into Gaza, which the Palestinian negotiators welcomed. Still, they insisted on clear guarantees that the deliveries would follow the January protocol without manipulation.

Maps and Withdrawal Timelines

Maps of military positions remain another major sticking point. The Hamas delegation is demanding that any Israeli withdrawal be based on the maps set out in the previous ceasefire agreement and implemented gradually according to a clear timetable.

That January agreement had allowed Israeli forces to remain temporarily in buffer zones around Gaza, ranging from 500 to 1,000 meters wide. The Palestinian side is adamant that troops must not remain inside Gaza itself and that the withdrawal must lead to a complete pullout in a second phase of the agreement.

According to the sources, the negotiators want precise language in each clause to prevent Israel from delaying or avoiding implementation, as has occurred in past agreements.

Waiting for US Pressure

Negotiations have not broken down, and the Hamas delegation believes American pressure will be critical to moving Israel off its current positions.

On Sunday evening, US President Donald Trump expressed hope that the ceasefire discussions would yield concrete results within days.

Later that night, a senior Hamas delegation met with Islamic Jihad leaders to coordinate positions and underscore that any deal must fulfill Palestinian aspirations, above all, ending the war, securing a full Israeli withdrawal, reopening crossings, and launching reconstruction.

Flexibility on the Morag Corridor

Meanwhile, Israel’s Security Cabinet convened Sunday evening to review the possibility of a prisoner swap. According to Channel 12, Prime Minister Benjamin Netanyahu told ministers he was interested in reaching an agreement on the hostages, even as Hamas continues to reject Israel’s terms. He warned that fighting could resume after any temporary ceasefire if Hamas does not accept Israel’s conditions for ending the war.

Yedioth Ahronoth reported that Netanyahu, once firmly opposed to any pullback from the Morag Corridor. a strategic strip that bisects Rafah and separates it from Khan Younis - is now willing to show some flexibility.

Israeli control of the 12-kilometer corridor would allow it to further fragment Gaza and expand its security buffer zones.