Iraqi premier defends dinar devaluation before parliament
Prime Minister Ali al-Zaidi said the currency move was intended to manage a fiscal squeeze, while lawmakers and protesters pressed the government over living-cost risks.
Prime Minister Ali al-Zaidi defended the government’s decision to weaken the official dinar rate in an appearance before parliament on October 8. The end-user rate rose from 1,320 to 1,520 dinars per US dollar after the cabinet-approved change took effect a day earlier.
Zaidi said the government faced falling oil-export income and disruption linked to the Strait of Hormuz, arguing that borrowing, delayed salaries or compulsory savings would have been worse options. Parliament Speaker Haibat al-Halbousi said the decision would not be reversed, as protests were reported in several provinces over the likely effect on prices.
Original reporting: Rudaw English ↗