Legal researcher Ali Al-Tamimi explains the limits of Parliament’s authority regarding the new exchange rate.
Legal researcher Ali Al-Tamimi explains the limits of Parliament’s authority regarding the new exchange rate.
10-7-2026
Legal researcher Ali Al-Tamimi explained on Wednesday that Parliament has the authority to discuss and amend the exchange rate included in the budget law, but it does not have the power to directly cancel the decision issued by the Central Bank, indicating that delaying the approval of the entire budget to put pressure on the bank may raise constitutional issues.
Al-Tamimi said in a statement that the Cabinet’s decision issued in its 22nd session on October 6, 2026, based on the recommendation of the Central Bank and in accordance with the Central Bank Law No. 56 of 2004, set the price of buying the dollar from the Ministry of Finance at 1500 dinars, and selling it to banks at 1510 dinars, and to the public at 1520 dinars, with it to be implemented starting from October 7.
He pointed out that Article 4, Section 1/B of the Central Bank Law grants the bank the authority to formulate and implement the exchange rate policy, while Article 16/B stipulates that the bank’s board of directors is the competent authority to formulate this policy.
Al-Tamimi relied on a number of previous judicial decisions, including Federal Court Decision No. 34/Federal/2015 and its unified No. 19/Federal/2015, which ruled that legislative intervention in monetary policy was unconstitutional, as well as case No. 32/Federal/2021 related to the exchange rate, which the court rejected on April 4, 2022, considering that determining the exchange rate is within the technical jurisdiction of the Central Bank.
He explained that a member of parliament can abstain from voting or vote to reject the exchange rate clause in the budget law and seek to amend it, if he believes that the new rate affects the purchasing power of citizens. However, he believes that disrupting the entire budget to pressure for the cancellation of the Central Bank’s decision may constitute an abuse of power.
He pointed out that the failure to approve the budget would result in continued spending according to the approved legal mechanisms, which could lead to delays in projects and appointments and increase uncertainty in the markets.
Al-Tamimi concluded that the most appropriate course of action, in his view, is to discuss the exchange rate clause within the budget and amend it if necessary, in addition to questioning the governor of the Central Bank and appealing to the Federal Court if there are legal grounds for appeal.
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