Iraq Devalues Dinar to 1,520 per Dollar, Triggers Trade Uncertainty
Iraq’s Central Bank set a new official rate of 1,520 dinars to the US dollar, up from 1,320, a 15% devaluation.
In Brief
- •Iraq’s Central Bank set a new official rate of 1,520 dinars to the US dollar, up from 1,320, a 15% devaluation.
- •The move aims to boost oil revenue in local currency and meet monthly salary obligations of about 10 trillion dinars ($6.7 bn).
- •Traders such as Hamza al‑Rudayni report losses of 25 million dinars ($16,500) and have halted buying and selling pending market stabilization.
- •The decision follows a sharp drop in oil exports through the Strait of Hormuz amid the US‑Israeli war on Iran.
- •The government’s public debt stands at 208 trillion dinars ($139 bn) and the devaluation is part of a broader fiscal strategy to avoid salary cuts or delayed payments.
Why It Matters
The devaluation directly affects Iraq’s trade balance by increasing the local currency cost of imported goods, creating uncertainty for small and medium‑sized traders who rely on dollar‑priced imports. It also signals the government’s attempt to shore up fiscal stability amid a volatile oil market, potentially influencing investor confidence and the broader economic outlook for the region.
Key Details
- Official exchange rate
- 1,520 dinars per US dollar
- Previous exchange rate
- 1,320 dinars per US dollar
- Devaluation percentage
- 15%
- Public debt
- 208 trillion dinars ($139 bn) at new rate
- Monthly salary requirement
- 10 trillion dinars ($6.7 bn)
Original Reporting & Sources
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