Iraqi Dinar Continues to Weaken against US Dollar

Iraq’s currency plummeted to a new low against the US dollar. (AFP)
Iraq’s currency plummeted to a new low against the US dollar. (AFP)
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Iraqi Dinar Continues to Weaken against US Dollar

Iraq’s currency plummeted to a new low against the US dollar. (AFP)
Iraq’s currency plummeted to a new low against the US dollar. (AFP)

Iraq’s currency plummeted to a new low against the US dollar. In the northern Kurdistan region, the rate stood at 1,550 Iraqi dinars to the dollar - the lowest it has traded since 2004, according to experts.

The depreciation in the dinar’s value triggered a wave of severe anxiety in the local markets that have been suffering from recession for weeks. It also spurred fears of the possibility of more decline given the inability of the Central Bank and government authorities to curb the spiral.

Economic analysts traced the decline to both local and foreign reasons. In Iraq, some private banks were excluded from currency auctions set up by the Central Bank. External factors, such as the actions of the US Federal Reserve, have also been commonly blamed for the decline in recent weeks.

About three weeks ago, the Iraqi government pledged to control the exchange rate. The dinar, however, continued to depreciate steadily, drawing political and popular criticism against Prime Minister Mohammad Shia al-Sudani.

The political criticism came from the pro-Iran Shiite Coordination Framework that had brought Sudani to power in October.

Hanan Al-Fatlawi, a Framework MP, stressed that the government needs to explain its policy in fighting the drop in the dinar’s value.

“Panic is gripping the market due to the rapid rise in the exchange rate of the dollar,” tweeted Al-Fatlawi.

“The government is required to reassure the people. It must clarify the measures it is taking to prevent the collapse,” she demanded, noting that the Central Bank governor had yet to comment on the issue.

The parliamentary Services and Construction Committee viewed the drop in the value of the currency as the government’s failure to implement its economic policies.



Houthis: Ceasefire Deal with US Does Not Include Israel

Members of the media take pictures of a destroyed plane at Sanaa International Airport, in the aftermath of an Israeli airstrike, in Sanaa, Yemen, May 7, 2025. REUTERS/Khaled Abdullah
Members of the media take pictures of a destroyed plane at Sanaa International Airport, in the aftermath of an Israeli airstrike, in Sanaa, Yemen, May 7, 2025. REUTERS/Khaled Abdullah
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Houthis: Ceasefire Deal with US Does Not Include Israel

Members of the media take pictures of a destroyed plane at Sanaa International Airport, in the aftermath of an Israeli airstrike, in Sanaa, Yemen, May 7, 2025. REUTERS/Khaled Abdullah
Members of the media take pictures of a destroyed plane at Sanaa International Airport, in the aftermath of an Israeli airstrike, in Sanaa, Yemen, May 7, 2025. REUTERS/Khaled Abdullah

A ceasefire deal between Yemen's Houthis and the US does not include sparing Israel, the group said on Wednesday, suggesting its shipping attacks that have disrupted global trade and challenged world powers will not come to a complete halt.

President Donald Trump announced on Tuesday the US would stop bombing the Iran-aligned Houthis in Yemen, saying that the group had agreed to stop attacking US ships.

After Trump made the announcement, Oman said it had mediated the ceasefire deal to halt attacks on US vessels.

There have been no reports of Houthi attacks on shipping in the Red Sea area since January.

"The agreement does not include Israel in any way, shape or form," Mohammed Abdulsalam, the chief Houthi negotiator, told Reuters.

"As long as they announced the cessation (of US strikes) and they are actually committed to that, our position was self-defense so we will stop."
While tensions may have eased between the United States and the Houthis, the agreement does not rule out attacks on any other Israel-linked vessels or targets.
The US intensified strikes on the Houthis this year, to stop attacks on Red Sea shipping.