$500 Million Dollar Shipment Fails to Stem Dinar Decline in Iraq

Iraqi lawmaker Daner Abdulghafar attributes the recent decline in the Iraqi dinar to several factors, including reduced dollar shipments and lower Central Bank sales. The last $500 million cash shipment from the US Federal Reserve to the Central Bank of Iraq arrived on August 6.

Abdulghafar warns that another layer of uncertainty surrounds the September 30 deadline for armed groups to surrender their weapons, which could lead to a restriction in dollar shipments. The possibility remains contested as a senior adviser to Prime Minister Ali Faleh al-Zaidi rejected reports of a plan to halt dollar shipments over the disarmament deadline.

Economic expert Ahmed Jaff points out that wider regional and political pressures are also affecting the market. He notes that Washington has warned countries helping Iran could face economic sanctions, adding anxiety over Iraq's exposure to possible financial measures.