US sanctions on Iran cause turmoil in Iraq


Staff member
US sanctions on Iran cause turmoil in Iraq
To prevent US dollars from reaching Russia and Iran, the Federal Reserve will strictly regulate dollar sales in Iraq, leading to a volatile dinar.
Published: JANUARY 20, 2023

Over the past weeks, the Iraqi dinar has suffered from unprecedented fluctuation in its exchange rate with the US dollar, which experts attribute to new measures imposed by the US Federal Reserve on Iraq. As part of a campaign to ensure that sanctions against Iran and Russia are upheld, the US is taking steps to prevent the dollar from reaching several countries, including Iran, Syria, Russia, and Lebanon.

The difference between the exchange rate set by the Central Bank of Iraq and the actual market rate has been as high as 10%. The Central Bank of Iraq set the exchange rate at 1,470 Iraqi dinars per dollar, while in the currency markets, including the black market, the Iraqi dinar trades at prices ranging between 1,590 and 1,620 per dollar.