Legal Expert: Parliament Can Amend Exchange Rate in Budget but Cannot Directly Revoke Central Bank Decision
Legal researcher Ali Al-Tamimi said on Wednesday that the Iraqi Parliament has the authority to discuss and amend the exchange rate included in the state budget, but cannot directly annul the Central Bank’s decision on the exchange rate. He warned that blocking the entire budget to pressure the Central Bank could raise constitutional concerns.
Al-Tamimi said that Cabinet Resolution No. 22, issued on October 6, 2026, based on a recommendation from the Central Bank and the Central Bank Law No. 56 of 2004, set the dollar’s purchase price from the Ministry of Finance at 1,500 dinars, its selling price to banks at 1,510 dinars, and its rate for the public at 1,520 dinars, effective October 7.
He explained that Article 4, First/B of the Central Bank Law grants the bank authority to formulate and implement exchange-rate policy, while Article 16/B assigns the Central Bank’s Board of Directors responsibility for formulating that policy.
Al-Tamimi also referred to previous Federal Supreme Court rulings, including Decisions No. 34/Federal/2015 and 19/Federal/2015, which he said rejected legislative interference in monetary policy. He also cited Case No. 32/Federal/2021 concerning the exchange rate, which the court dismissed on April 4, 2022, arguing that setting the exchange rate falls within the Central Bank’s technical jurisdiction.
He noted that lawmakers may reject or seek to amend the exchange-rate provision in the budget if they believe the new rate could negatively affect citizens’ purchasing power. However, he argued that suspending the entire budget in an attempt to force the cancellation of the Central Bank’s decision could constitute an abuse of legal authority.
He added that failure to approve the budget would mean continued government spending under existing legal mechanisms, potentially delaying projects and appointments while increasing uncertainty in the markets.
Al-Tamimi concluded that the most appropriate legal approach would be to debate and, if necessary, amend the exchange-rate provision within the budget, while also allowing Parliament to question the Central Bank governor or challenge the decision before the Federal Supreme Court if sufficient legal grounds exist.
