Iraq has devalued its dinar from 1,320 to 1,520 per US dollar, marking its first adjustment since 2023. This 13% loss in dinar value aims to support domestic industries and attract non-oil investments, but analysts suggest it’s largely a response to oil revenue shocks due to the Iran war. While some project costs will rise, inflation risks persist and depend on market dynamics. The sustainability of this rate hinges on resolving budget deficits and improving economic conditions.
