BAGHDAD (Dispatches) -- Iraqi traders and citizens gathered in Baghdad’s Tahrir Square on Sunday to protest the government’s decision to devalue the Iraqi dinar against the U.S. dollar, as security forces dispersed the demonstrators citing a lack of prior security approval.
The protest came amid mounting economic fallout from the currency adjustment, which raised the official exchange rate from 1,320 to 1,520 dinars per dollar. 
A commercial company reported losses exceeding 250 million Iraqi dinars, as financial transfers were suddenly calculated at the new rate despite customs procedures having been completed months earlier. 
One employee at the protest noted that the price of a tray of eggs had already reached 8,500 dinars, highlighting the immediate impact on ordinary Iraqis.
Traders from multiple provinces were planning to converge on Baghdad on Sunday for a larger protest gathering against the decision. Similar protests also erupted in Kirkuk, where citizens demanded a return to the previous exchange rate and warned of worsening conditions for low-income groups.
The decision has exposed deep rifts within the ruling Shia Coordination Framework. While the Framework had reportedly approved the exchange rate change in advance, it was caught off guard by the scale of public anger. 
According to Al-Mada, political forces began promoting the possibility of withdrawing confidence from Prime Minister Ali al-Zaidi in an attempt to contain public pressure.
Al-Zaidi defended the decision in a late-night parliamentary session, declaring himself “the only one responsible” for it. He stated his government faced three options: forced savings, paying salaries every 45 days, or borrowing — and chose the exchange rate adjustment to avoid drowning the country in debt. 
He also announced that more than $3 billion in foreign currency would arrive in the coming days and be injected into the market.
However, Ali al-Jurani of the Wisdom Movement stated that the decision came from the Coordination Framework itself and was approved by political bloc leaders and the State Administration Coalition, contradicting al-Zaidi’s claim of sole responsibility.
The dinar crisis coincided with continued political paralysis. The Iraqi parliament postponed a session to complete the cabinet lineup due to ongoing disputes over remaining ministerial portfolios, including Defense, Interior, Planning, Higher Education, and others. The selection of four deputy prime ministers also remained unresolved.
The Framework’s Baha al-Araji stated the coalition supports the exchange rate decision but stressed the need for protections for low-income citizens.