Iraq’s government has announced a devaluation of the national currency, the dinar, in a bid to relieve a growing cash crunch that has hampered public sector payments.
The move is intended to make it easier for the state to meet salary obligations, a key priority after months of shortages in the banking system that have left many workers unpaid.
However, the decision has sent traders into a state of uncertainty. With the dinar now weaker, the cost of importing goods has risen, squeezing profit margins and complicating supply‑chain planning for businesses that rely on foreign products.
Economists say the devaluation may provide short‑term relief for public finances, but it also risks increasing inflation and eroding confidence in the currency, a concern that could further destabilise the already fragile economic environment.
<small>Source: Al Jazeera — read the original story there.</small>
