US-Israel-Iran War Latest Live News: Iraq Devalues Dinar From 1,300 to 1,500 Per Dollar as War Disrupts Oil Exports and Strait of Hormuz Shipping – Check Latest Currency Rate and Economic Impact

Iraq has devalued its currency against the US dollar, with the official exchange rate being revised from around 1,300 dinars to 1,500 dinars per dollar. The decision was taken by the Iraqi Cabinet and announced by the country’s central bank on Wednesday.

The previous official rate had been in place since 2023. However, Iraq has continued to have a significant difference between its official exchange rate and the rate available in the market.

Why did Iraq devalue its currency?

The currency adjustment comes amid growing economic pressure linked to the US-Iran war and disruptions to shipping through the Strait of Hormuz. Iraq’s economy is heavily dependent on oil exports, with much of its oil previously transported through the strategic waterway. Since the conflict began, Iraq has had to use an overland route through Syria to move oil for export, increasing transportation costs and reducing efficiency.