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.



EU Official: 175 Mn Euro Syria Recovery Package 'Clear Message' of Support

EU Commissioner for Mediterranean Dubravka Suica arrives to attend a College of Commissioners meeting at the EU headquarters in Brussels on May 21, 2025. (Photo by Nicolas TUCAT / AFP)
EU Commissioner for Mediterranean Dubravka Suica arrives to attend a College of Commissioners meeting at the EU headquarters in Brussels on May 21, 2025. (Photo by Nicolas TUCAT / AFP)
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EU Official: 175 Mn Euro Syria Recovery Package 'Clear Message' of Support

EU Commissioner for Mediterranean Dubravka Suica arrives to attend a College of Commissioners meeting at the EU headquarters in Brussels on May 21, 2025. (Photo by Nicolas TUCAT / AFP)
EU Commissioner for Mediterranean Dubravka Suica arrives to attend a College of Commissioners meeting at the EU headquarters in Brussels on May 21, 2025. (Photo by Nicolas TUCAT / AFP)

Visiting EU Commissioner for the Mediterranean Dubravka Suica said Thursday that a 175 million euro package for war-torn Syria was a "clear message" of support for its reconstruction.

Suica announced the package in Damascus Wednesday, saying it would focus on sectors including energy, education, health and agriculture, helping rebuild Syria's economy, support its institutions and promote human rights.

"I came here... with a clear message that we are here to assist and help Syria on its recovery," Suica told AFP in an interview on Thursday.

"We want that reconstruction and recovery will be Syria-owned and Syria-led," she said, on the first visit by an EU commissioner since a transitional government was unveiled in late March.

"We want to see Syria to be a regular, normal, democratic country in the future," she added.

The European Union announced last month it would lift economic sanctions on Syria in a bid to help its recovery.

"This is a pivotal moment -- a new chapter in EU-Syria relations," Suica said on X, calling her meeting with interim President Ahmad al-Sharaa "constructive".

Like Syria's neighbors, Western governments are keen to steer it onto the road to stability after the war triggered an exodus of millions of refugees.

Refugee returns should be "safe, voluntary and dignified", Suica said.

The EU has not designated Syria as a safe country for returns "because we don't want to push people to come here and then they don't have a home", she said.