Iraqi Dinar drops amid looming US sanctions — Iraqi Bankers

BAGHDAD, The Iraqi dinar exchange rate, in an unprecedented manner, has fallen against the US dollar in the black market, Iraqi banker said on Monday.

The record drop of the dinar against the greenback was against the backdrop of a warning by the United States that it would impose economic sanctions against Baghdad in case it officially asked Washington to pull its troops out of the country, the bankers said.

Merchants and money exchange dealers told Kuwait News Agency (KUNA) that the Iraqi currency currently fell from 1,200 dinars for a dollar to 1,240 dinars per a USD.

Although the price drop is not relatively large, it is unusual after years of exchange rate stability, with the dinar rate ranging between 1,200 to 1,210 per dollar, they said.

A source at the Central Bank of Iraq, in remarks to the Kuwaiti News Agency (KUNA), said official rate of the dinar was still at its previous level — at 1.190 dinars. The source clarified that official exchange rate in the country is not affected by political threats. Rather, it depends on demand and supply through the official currency auction. US President Donald Trump threatened to impose curbs on Iraq in response to a vote by the Iraqi parliament to end presence of foreign forces in the country.

Source: Kuwait News Agency