Iraq Devalues Dinar as Oil-Route Disruption Deepens
Baghdad adjusted the official dinar rate as the regional war and Strait of Hormuz disruption increased pressure on oil-dependent public finances.
Iraq’s Finance Ministry set a new official rate of 1,500 dinars per US dollar for dollar sales, while consumers buying through banks will pay 1,520 dinars. The move is intended to raise the dinar value of oil income available for domestic spending.
The adjustment comes as disrupted shipping through the Strait of Hormuz has pushed Iraq toward more costly overland export routes through Syria. The weaker official rate may support the budget, but it also risks making imported goods more expensive for households.
Original reporting: Associated Press ↗