Iraq lowers dinar to 1,520 per dollar amid oil revenue shock

Iraq’s state news agency reported that the government devalued the dinar to 1,520 per US dollar, with the Finance Ministry buying dollars at 1,500 dinars and banks selling at 1,510 dinars. Economists linked the decision to a plunge in oil sales after the US-Israeli war on Iran disrupted Gulf export routes, pushing international oil prices above $100 a barrel. Analyst Mohammed al-Saffar described the devaluation as a fiscal tool to offset the revenue shock, noting it will increase the dinar value for oil earnings but also lift import prices and reduce consumer buying power.

Four parliamentarians from the finance committee said the government may tweak the rate further. The draft budget assumes oil at $58 a barrel, projects spending of 217 trillion dinars, and anticipates a deficit exceeding 40 trillion dinars, with crude exports projected at about 4 million barrels per day, including Kurdistan shipments.