Iraq devalues dinar 13% as Hormuz disruption hits oil revenue
The central bank said in a statement that it had revised the official exchange rate to 1,520 Iraqi dinars per dollar from around 1,320.
Iraq devalued its currency by around 13% against the dollar on Wednesday as disruptions to oil exports during the Iran war squeeze government revenue.
What happened: The OPEC member’s central bank announced a new exchange rate of 1,520 Iraqi dinars to the dollar, replacing the rate of around 1,320 set in 2023.
The Cabinet approved the change on Tuesday evening “to meet the relevant financial, economic and monetary requirements,” the bank said.
It also said its foreign reserves remained sufficient to cover external trade, foreign bank card transactions and cash for travelers.
Why it matters: The devaluation increases the dinar value of Iraq’s dollar-denominated oil revenue, helping the government finance domestic spending as export earnings decline. However, it also raises import costs and erodes household purchasing power.
