How the War Between Iran, Israel, and the United States Affects Iraq's Currency, the Iraqi Dinar, and Its Revaluation
The ongoing conflict involving Iran, Israel, and potentially the United States has a significant impact on Iraq's economic and political stability, which directly affects the Iraqi dinar and its chances of revaluation.
Due to Iraq's geographic and political proximity to Iran, any escalation in the region increases the risk of instability within Iraq. If the conflict intensifies, foreign investment in Iraq may decline, oil exports may be disrupted, and security risks may rise. These factors can cause the dinar to weaken or remain unstable, delaying any potential revaluation (RV).
Furthermore, U.S. involvement in the war can create pressure on the Central Bank of Iraq regarding monetary policies, especially if there are sanctions or political tension related to Iraq’s relations with Iran. On the other hand, if Iraq maintains stability and plays a neutral or diplomatic role, it may help preserve investor confidence and move forward with economic reforms that could support a future revaluation of the dinar.
In summary, increased regional conflict typically delays or damages the conditions necessary for a dinar revaluation, while peace and internal reform would support its possibility.
