The Daily Digest
Prime Minister Ali al-Zaidi defended the dinar devaluation in parliament on Thursday night, after the cabinet’s Tuesday decision raised the public dollar-selling rate from 1,320 to 1,520 dinars per dollar from Wednesday. He said public debt had exceeded 208 trillion dinars when he took office and monthly financial obligations required around 10 trillion dinars. He described the alternatives as compulsory savings, salaries every 45 days or further borrowing. A government source said political leaders backed the higher rate before its announcement. A parliamentary source said Central Bank governor Nizar Hussein told the Finance Committee that the new official rate of 1,500 dinars per dollar was fixed. Changing it through the budget law would require recalculating spending allocations and financial tables. The federal budget is scheduled to reach parliament on Saturday. On Friday, Sadr al-Din al-Qubbanji, a senior Islamic Supreme Council leader and Najaf Friday-prayer leader, urged reversal or payment of public salaries in dollars if the decision remained.
The Coordination Framework rejected using the exchange rate to cover budget deficits and sought a stabilization fund financed from oil-price surpluses. Parliamentary Economy and Trade Committee member Hamed al-Mousawi, however, said the Framework unanimously approved the change on condition that its proposals were implemented. Watan TV (Badr Organization — affiliated) reported proposals for protected essential-goods prices, six-month customs exemptions and a 15% tuition cut. Miqdad al-Khafaji (KH — Hoquq MP) objected to replacing the currency hearing with a secret evening meeting. Sabereen News (KH — affiliated) reported MPs threatening to withhold budget approval unless the increase was reversed. In Kut, Al-Kornet al-Kata’ibi (KSS — affiliated) and Shabab al-Islam (Ashab al-Kahf — owned, non-official) reported residents protesting the increase on Thursday. On Friday, Al-Janoub TV (Harakat al-Jihad wal-Bina — official) reported pressure from rising dollar and fuel costs on Basra’s construction-materials market. Sabereen and Al-Nujaba TV (Nujaba — official) published matching reports of complete car-dealership closures throughout Diwaniya governorate after the dollar rise halted buying and selling.
Separately, two drones struck a camp housing Iranian Kurdish refugees in Korkosk, Khabat district of Erbil province, on Thursday, the Kurdistan Region Counter-Terrorism Service said. The service reported no casualties. Local authorities said civil-defence teams and security forces were dispatched to extinguish a fire at the site. The Khabat organisation said two drones attacked its headquarters. Kurdistan Region Prime Minister Masrour Barzani said on Tuesday that talks with the federal government on acquiring air defences were continuing.
In the oil trade, Chinese independent refiners bought at least 12 million barrels of Iraqi and Qatari crude for October and November delivery to replace dwindling Iranian supplies, traders said. Most purchases were Iraqi Basra Medium and Heavy crude. One trader estimated total purchases at 15 million to 20 million barrels. Traders said the cargoes sold at delivered premiums of $12 to around $20 a barrel against ICE Brent. Iraq’s State Oil Marketing Organization set its November Basrah Medium price for Asia at a $2.80-per-barrel discount to the Oman/Dubai average. The traders’ premiums cover delivered cargoes against ICE Brent, while SOMO’s discount uses a different benchmark.