Iraq devalues dinar as oil-shipping disruption deepens
Baghdad set a new official rate of 1,500 dinars per US dollar, citing financial and monetary pressures amid disrupted oil exports.
Iraq’s cabinet approved a new official exchange-rate structure that puts the base rate at 1,500 dinars to the dollar, replacing the previous level of about 1,320. Banks will receive dollars at 1,510 dinars and retail customers at 1,520, according to reports citing the central bank.
The move comes as Iraq faces pressure on dollar inflows and oil-export logistics. A weaker dinar can increase the local-currency value of oil revenue, but it also raises the cost of imported goods for households and businesses.
Original reporting: Associated Press ↗