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.



France Says Algeria Threatening to Expel Diplomatic Staff 

This handout photograph released by French Ministry for Europe and Foreign Affairs (MEAE) shows France's Foreign Minister Jean-Noel Barrot meeting with Algeria's Foreign Minister at the ministry headquarters in Algiers on April 6, 2025. (AFP Photo / Handout / Ministry for Europe and Foreign Affairs)
This handout photograph released by French Ministry for Europe and Foreign Affairs (MEAE) shows France's Foreign Minister Jean-Noel Barrot meeting with Algeria's Foreign Minister at the ministry headquarters in Algiers on April 6, 2025. (AFP Photo / Handout / Ministry for Europe and Foreign Affairs)
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France Says Algeria Threatening to Expel Diplomatic Staff 

This handout photograph released by French Ministry for Europe and Foreign Affairs (MEAE) shows France's Foreign Minister Jean-Noel Barrot meeting with Algeria's Foreign Minister at the ministry headquarters in Algiers on April 6, 2025. (AFP Photo / Handout / Ministry for Europe and Foreign Affairs)
This handout photograph released by French Ministry for Europe and Foreign Affairs (MEAE) shows France's Foreign Minister Jean-Noel Barrot meeting with Algeria's Foreign Minister at the ministry headquarters in Algiers on April 6, 2025. (AFP Photo / Handout / Ministry for Europe and Foreign Affairs)

France said on Monday that Algeria had threatened to expel 12 of its diplomatic staff and that it would take immediate reprisals should that occur in the latest flare-up between them.

Algeria protested over the weekend against Frances's detention of an Algerian consular agent suspected of involvement in the kidnapping of an Algerian. French media said three people, including the diplomat, were under investigation over the seizure of Algerian government opponent Amir Boukhors.

"The Algerian authorities are demanding that 12 of our agents leave Algerian territory within 48 hours," French Foreign Minister Jean-Noel Barrot said in a statement.

"If the decision to expel our agents is maintained, we will have no choice but to respond immediately."

There was no immediate confirmation from Algeria of an imminent expulsion.

France's relations with its former colony have long been complicated, but took a turn for the worse last year when French President Emmanuel Macron angered Algeria by backing Morocco's position over the disputed Western Sahara region.

Only last week, Barrot had said ties were returning to normal after a visit to Algeria.