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Despite Baghdad-Erbil agreement, Iraq fails to pass federal budget bill

Disagreements over the dollar exchange rate and foreign loans have blocked the parliament from passing the country's budget bill for a fifth time.
Iraqi protesters take part in a demonstration at Tahrir Square in Baghdad on December 21, 2020.

Iraq’s parliament failed to pass the federal budget bill on Sunday despite a last-minute agreement between Erbil and Baghdad over the Kurdistan Region’s share. Now disagreements loom over reversing the dollar exchange rate and the addition of foreign loans. 

In December, Iraq’s cabinet approved a 2021 draft budget of 150 trillion Iraqi dinars (about $103 billion) and sent it to the parliament for approval. But disputes over the Kurdistan Regional Government's oil and non-oil revenues have delayed the vote. 

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