Iraq Devalues Dinar to 1,500 Per Dollar as War Strangles Oil Routes

Iraq officially devalued its currency on Wednesday, lowering the exchange rate from 1,300 to 1,500 dinars per USD. The devaluation stems directly from the ongoing U.S.-Iran war, which has heavily disrupted Iraq's vital oil shipments through the Strait of Hormuz. To bypass maritime blockades, Iraq resorted to exporting oil overland through Syria, though the alternative route remains significantly more expensive and less efficient. The unofficial street rate, which already hovered above 1,600 per dollar before the cabinet's decision, quickly surged past 1,700 following the announcement. Under the new policy, the Iraqi Finance Ministry will sell dollars at 1,500 dinars, while everyday consumers utilizing banks will pay a 1,520 rate. "to meet the relevant financial, economic and monetary requirements." — Iraq Central Bank