Iraq Devalues Dinar to 1,500 per US Dollar
The Iraqi government devalued its currency to 1,500 dinars per US dollar to offset economic losses caused by shipping disruptions in the Strait of Hormuz.
The Cabinet of Iraq devalued the national currency on Wednesday, adjusting the official exchange rate from approximately 1,300 dinars to 1,500 dinars per U.S. dollar. The government implemented the change to address financial, economic, and monetary requirements following widening gaps between official and market rates.
Economic pressure intensified as the U.S.-Iran war and shipping disruptions in the Strait of Hormuz forced Iraq to redirect oil exports through a more expensive overland route via Syria. The devaluation allows the government to increase dinar returns from these exports to cover domestic spending.
Under the new system, the Ministry of Finance of Iraq will sell dollars at 1,500 dinars, while bank consumers will pay 1,520 dinars. Following the announcement, the unofficial market rate climbed to over 1,700 dinars to the dollar.
