The Iraqi government, facing a financial crisis exacerbated by the US-Israeli war on Iran and Strait of Hormuz disruptions, devalued its currency on October 7. The Central Bank of Iraq set the new official exchange rate at 1,520 dinars per US dollar for cash sales, down from 1,320 dinars per dollar, a nearly 15% devaluation. Prime Minister Ali al-Zaidi stated he was responsible for the decision, which aims to help the government cover public spending, including salaries, by receiving more local currency for oil revenues. Traders, however, face rising import costs and uncertainty.