The "Lebanese scenario" might be repeated in Iraq, sources expect

Shafaq News / Informed sources revealed that some political parties took part in organizing massive gatherings in the country during the next few days, to target government and private banks, protesting against the devaluation of the dinar and corruption in the process of the central bank's selling of the foreign currency.

The Central Bank had decided to officially reduce the Iraqi dinar's value against the dollar, from 1190 to 1450 dinars.

The government seeks to achieve an abundance of funds, as it spends the salaries of employees in Iraqi dinars while it receives revenues from selling oil in dollars.

The sources told Shafaq News Agency that the Lebanese scenario might be repeated in Iraq. Massive protests will return to the street, and the target will be private and governmental banks.

Several parties earn millions of dollars daily from the process of selling foreign currency, which raises the anger of rival parties that may exploit the devaluation of the dinar to create chaos and burn banks, the source noted.

The sources said that the security authorities had already deliberately placed dozens of riot police in the Central Bank's vicinity in Baghdad, coinciding with the spread of this information.

Since the beginning of this year, Iraq has been suffering a stifling financial crisis due to the decline in oil prices after the outbreak of COVID-19, as revenues from selling crude constitute 95% of state expenditures.

Observers expect commodity prices in the country to rise about 20% after the devaluation of the dinar.

The Iraqi Ministry of Planning estimates that the poverty rate has risen by more than 30% due to the repercussions of COVID-19.