US restrictions on Iraqi banks’ foreign transfers aimed in part at ending dollar smuggling to neighboring Iran have indirectly weakened the country’s curre.
The Iraqi dinar's downward slide comes after the US Federal Reserve imposed measures imposed on the Iraqi Central Bank to hinder illegal transfers of US dollars out of Iraq and into Iran and other neighbouring countries.
Iraq's Prime Minister Mohammed Shia al-Sudani has replaced the country's Central Bank governor after the incumbent said he wanted to leave the job amid a free fall in the Iraqi dinar.