The yield on 30-year US Treasury bonds rose to the highest level since 2002

Iraq devalued its currency on Wednesday, raising the official exchange rate from about 1,300 dinars to the dollar to 1,500 dinars, in a move that comes in light of the disruptions that affected the movement of oil shipping as a result of the war between Iran and the United States and the closure or restriction of shipping traffic through the Strait of Hormuz.

The Central Bank of Iraq said, in a statement, that the new exchange rate was approved during a Council of Ministers meeting on Tuesday evening, to meet the relevant financial, economic and monetary requirements.

The previous official exchange rate was set in 2023, while the market price remained higher than it with varying degrees, before the gap widened in recent months due to the repercussions of the war and disturbances in shipping movement through the Strait of Hormuz.

The Iraqi economy depends largely on oil exports, most of which were transported through the strait before the outbreak of war. Since the beginning of the unrest, Iraq has resorted to transporting oil overland through Syria for export, but this route is more expensive and less efficient.

The exchange rate in the unofficial market had exceeded 1,600 dinars to the dollar before the announcement of the devaluation of the currency, but it rose after the announcement to more than 1,700 dinars to the dollar.

Under the new official exchange rate, the Ministry of Finance will sell dollars at 1,500 dinars to the dollar, while consumers who buy dollars from banks will pay 1,520 dinars to the dollar.

During the fifteenth consultative meeting held in the Bahraini capital, Manama, the ministers of trade and industry and heads of federations and chambers of commerce and industry in the Gulf Cooperation Council countries discussed the importance of strengthening the partnership between the government and private sectors, and supporting Gulf economic integration in the face of regional and international changes.

The Secretary-General of the Gulf Cooperation Council, Jassem Al-Budaiwi, confirmed that the meeting represents a strategic dialogue platform that brings together policy makers and decision-makers with representatives of the private sector, with the aim of enhancing joint cooperation and stimulating economic growth for the GCC countries, in addition to addressing the regional and international economic challenges facing the Gulf private sector.

Al-Budaiwi explained that the private sector plays a vital role in achieving the national goals of the GCC countries and enhancing the process of joint Gulf cooperation, noting that the meeting focuses on the challenges faced by the private sector, and working to overcome them by finding appropriate solutions.

For his part, President of the Federation of Gulf Chambers and Chairman of the Board of Directors of Qatar Chamber, Sheikh Khalifa bin Jassim Al Thani, stressed the importance of strengthening Gulf integration and building a more flexible commercial and logistical system capable of dealing with regional and international changes and disturbances, in a way that ensures the continuity of the flow of goods, maintains the security of markets, and enhances the competitiveness of the Gulf private sector.

He praised the efforts of the General Secretariat of the Gulf Cooperation Council in communicating and coordinating with the Union of Gulf Chambers, which contributes to enhancing cooperation and joint work between the two sides, indicating that the meeting represents an opportunity to enhance practical dialogue between governments and the private sector, and to transform lessons learned from current challenges into implementable policies and initiatives.

He pointed out the importance of strengthening the Gulf economy's ability to protect the continuity of trade and supply chains, support the competitiveness of the private sector, and ensure the security of markets in the face of any future disturbances.

The meeting concluded by emphasizing the importance of focusing efforts on the topics on the agenda, which contributes to reaching initiatives that support the growth of the private sector in the GCC countries, enhances its role as an engine for the economy, stability and development, and consolidates the position of the GCC countries as a global financial, investment and economic center.

The meeting was chaired by the Minister of Industry and Trade of the Kingdom of Bahrain, Chairman of the current session, Abdullah Fakhro, in the presence of trade ministers and heads of chamber federations in the Gulf Cooperation Council countries.