Iraq devalues currency as Middle East war hits oil exports

Iraq's central bank has devalued its currency, the dinar, against the dollar. The new official exchange rate is 1,500 dinars to the dollar, up from around 1,300 dinars to the dollar. According to Fortune, this change was decided at a meeting of Iraq's Cabinet.

The devaluation is attributed to the crisis caused by the Middle East war, which has hurt Iraq's oil exports. Iraq's economy relies heavily on oil exports, most of which were previously shipped via the Strait of Hormuz. However, since the war started, Iraq has had to resort to shipping oil overland through Syria, a more expensive and less efficient route.

The devaluation means that each dollar earned from oil exports brings in more dinars, helping the Iraqi government cover domestic spending. However, it also makes imports more expensive, potentially driving up prices for consumers. The unofficial exchange rate had risen to over 1,600 dinars to the dollar before the official devaluation, and jumped to over 1,700 dinars to the dollar after the announcement, as per The Economic Times - Top News.

Brief written by urgent.news from Punch, Punch Nigeria, Fortune, The Economic Times - Top News — 4 reports on this story. Machine-written — may contain errors; check the original before relying on it.