On 7 October 2026 the Central Bank of Iraq announced an official rate shift from about 1320 to 1520 IQD per USD. The move followed a sharp fall in crude shipments after the Strait of Hormuz was disrupted. Oil exports dropped from over 3.6 million bpd to about 2.34 million bpd in August. The devaluation was framed as a fiscal adjustment, not a collapse.
💡 Frequently Asked Questions (FAQ)
- Q: Why did Iraq devalue the dinar in October 2026?
- A: The Central Bank raised the official rate from 1320 to 1520 IQD per USD after Hormuz disruption sharply reduced crude shipments and oil revenues needed for the budget.
- Q: How much did Iraqi oil exports fall?
- A: Exports dropped from over 3.6 million barrels per day to about 2.34 million bpd in August following the Strait of Hormuz disruption.
- Q: Is the devaluation a collapse or policy adjustment?
- A: Iraq framed the move as a fiscal adjustment to align the exchange rate with reduced oil income, not a currency collapse.
- Q: What does this mean for oil-dependent economies?
- A: It highlights how oil export revenues directly determine exchange rate stability, with $58 per barrel budget breakeven acting as a lifeline.