Al-Fatah Coalition: Increasing the exchange rate is for the benefit of private banks

Shafaq News / Al-Fatah Coalition, led by Hadi Al-Amiri revealed on Sunday that the First Deputy Speaker of Parliament, Hassan Al-Kaabi is preventing to interrogate the central Bank Governor.

The leader of the Coalition, Mouin Al-Kadhimi told Shafaq News agency "Certainly, The governor of the Central Bank, Mustafa Mukhaif was the Sadrist movement (Saairun) candidate, and the first deputy speaker of Parliament prevents of questioning him despite MPs demand.”

He added, "Increasing the exchange rate benefits some private banks which will affect negatively the financial situations of the citizens."

Iraq’s central bank increased the sale price of U.S. dollars to banks and currency exchanges to 1,460 dinars, from 1,182 dinars, seeking to compensate for a decline in oil revenue due to low crude prices, the bank said on Saturday.

The central bank of Iraq said the key reason behind the dinar’s devaluation was to close the gap of widened 2021 budget inflation after a collapse in global oil prices, a major source of Iraq’s financial resources. For his part, the head of the State of Law Coalition, Nouri al-Maliki, warned on Sunday of the "serious catastrophic" repercussions threatening the state and society due to the devaluation of the local currency, demanding that the government have a role in protecting the citizen, which will result from this measure.

The devaluation decision came as a preemptive move to prevent “draining Iraq’s foreign reserves” and help government to secure public servants’ salaries, the bank said.