Iraqi dinar depreciates amid regional tensions and armed group threats
Although Iraq remains outside the direct conflicts in the region, threats from Iraqi armed factions have contributed to economic volatility.
ERBIL (Kurdistan24) – The Iraqi dinar fell sharply against the US dollar on Tuesday, with the exchange rate surpassing 153,000 dinars per 100 US dollars. The depreciation followed Iranian missile attacks on Israel and statements made by Iraqi armed groups, fueling instability in the market.
Although Iraq remains outside the direct conflicts in the region, threats from Iraqi armed factions have contributed to economic volatility. In a statement, the Islamic Resistance in Iraq warned that any US military intervention against Iran would result in targeting US interests across Iraq. They further declared that if Israel were to use Iraqi airspace for strikes against Iran, US bases would be directly attacked.
In addition to these threats, protests erupted in Iraq following Israeli military operations in Lebanon. The protests have heightened domestic demand for US dollars, further straining the value of the dinar. Economic analysts point to growing uncertainty in the region as a key factor behind the dinar's decline.
This combination of external geopolitical tensions and internal unrest has left Iraq facing increased economic instability.