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
TT
20

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.



Lebanon to Seek US Guarantees in Response to Proposal

US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)
US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)
TT
20

Lebanon to Seek US Guarantees in Response to Proposal

US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)
US envoy to Beirut Tom Barrack in Lebanon last week (Reuters)

Lebanon plans to seek assurances from Washington on the implementation of any future deal involving Hezbollah’s disarmament, Lebanese political sources told Asharq Al-Awsat, ahead of a visit by US envoy to Beirut Tom Barrack early next week.

The question of US guarantees tops Lebanon’s concerns, which are shared not only by Hezbollah but also by the Lebanese state, the sources said.

The issue is central to the discussions of a tripartite Lebanese committee that includes representatives of President Joseph Aoun, Parliament Speaker Nabih Berri, Prime Minister Nawaf Salam, meeting regularly at the presidential palace to draft a unified response to a US proposal.

In parallel, the Quintet group - comprising the US, France, Saudi Arabia, Egypt, and Qatar - met at the US embassy in Beirut to discuss the situation, local media reported.

Saudi Ambassador Walid Bukhari was absent from the talks, reportedly due to travel.

According to the sources, Barrack’s visit is not solely to receive Lebanon’s response to the US proposal, but also to hold further consultations with the country’s top leaders.

The US paper outlines a phased plan prioritizing the disarmament of Hezbollah, delineation of Lebanon’s land border with Syria, and the implementation of long-delayed financial, economic, and administrative reforms.

“Lebanon views the proposal as the basis for negotiations, not a surrender document,” the sources said, noting that the primary demand to be raised will be related to binding US guarantees.

They cited the bitter experience that followed the previous ceasefire deal, after which Israel allegedly continued attacks, held on to five disputed points in southern Lebanon, and hindered the return of displaced residents—all while international aid for reconstruction failed to materialize.

“The committee is meeting almost daily,” one source said. “There is consensus on the need for an Israeli withdrawal from occupied points and an end to violations as a prerequisite for any deal. These are sovereign principles Lebanon will not abandon.”

Despite Hezbollah’s public resistance to disarmament, sources described the group’s current stance as “constructive.”

Hezbollah is said to be engaging in discussions through the state’s official channels, with party officials expressing concern over the absence of international guarantees and the risk of being sidelined politically once it gives up its arms.

“There are internal concerns that Hezbollah could be pushed out of political life, especially after talks around electoral law reforms,” one source said.

These fears are compounded by delays in international aid, reconstruction plans, and continued Israeli violations—issues that have persisted since the ceasefire in November.

On Wednesday night, Hezbollah Secretary-General Naim Qassem reiterated the party’s rejection of “any threat of force or foreign meddling,” and insisted that Hezbollah would not “surrender land or weapons to the Israeli enemy” or compromise on its rights.

Qassem also accused Israel of violating the ceasefire more than 3,700 times, while the international community “watches silently, calling only for concessions.” He said Hezbollah would continue to resist, as it has done for decades.

A senior Hezbollah lawmaker said the group remains open to cooperating on strengthening the Lebanese state and restoring its authority across the country—provided Israel withdraws from disputed southern points and halts its ongoing violations.

MP Ali Fayyad, a member of Hezbollah’s parliamentary bloc, said the group “has consistently shown a positive willingness to cooperate in all matters related to state-building, institutional reform, and improving operational capacities to help achieve the desired stability.”

Speaking on Thursday, Fayyad added: “This includes supporting the state in extending its authority over all Lebanese territory and enabling it to carry out all its duties—chief among them the protection and defense of the people and sovereignty.” However, he warned, “None of this will be possible unless national efforts unite to achieve a key condition: Israel must withdraw from the five occupied positions it still holds, end its continued violations, and respect Lebanese sovereignty.”

Fayyad’s comments came amid a broader debate on the future of Hezbollah’s weapons and its role within the state.

Opposition lawmaker Fadi Karam from the Lebanese Forces party slammed Hezbollah’s rhetoric in a post on X.

Addressing Hezbollah’s Qassem, he wrote: “Your weapons have destroyed Lebanon and continue to give Israel an excuse to remain on our land. You’ve tied Lebanon to Iran. And now you claim that handing over your weapons to the Lebanese Army means handing them to Israel? That’s delusional and only exposes Lebanon to new wars.”

The statements reflect widening divisions over Hezbollah’s future role and the path toward national sovereignty and stability, as Lebanon grapples with US-led proposals aimed at de-escalating tensions and launching long-delayed reforms.