The Iraqi government and the Central Bank of Iraq instituted changes in December 2020 that brought down the value of the dinar and the exchange rate in relation to dollars. This brought the exchange rate from a value of $100 USD at 118 IQD to $100 at 145 IQD.
The devaluation of the currency came as a response to a severe liquidity crisis, the result of low oil prices in 2020.
The leader of the Sadrist Movement, Muqtada al-Sadr, weighed in on the increased price of the dollar in a tweet in February, saying the increased value of the dollar against the dinar should not result in price increases, especially for basic goods.
He suggested methods to bring down the dollar-dinar exchange rate and asked the minister of finance and the head of the central bank to speak before the parliament.
Criticism of the Iraqi Minister of Finance, Ali Abdul-Amir Allawi, grew in February and the Deputy Parliament Speaker, Hakim al-Zamili, said a travel ban will be imposed against Allawi after he refused a summons to appear before parliament.
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