Political and economic crises first come to mind when Iraq is talked about. Ups and downs in Iraq’s economy have cost its citizens a big price in the last decades and lately the iraqi currency has declined against the dollar by a remarkable rate. The exchange rate was around 147000 IQD to $100 in November, but now it is more than 165000 IQD.  According to Reuters, the New York Federal Bank implemented tougher regulations over international dollar transactions by Iraq’s commercial banks due to the U.S. reflection of illegitimate syphoning of the dollar to Iran through Iraq.Thus, Iraqi banks have been regulated to use an online platform to uncover their dollar transactions. However, the majority of Iraqi private banks have not been registered on the platform, which later resulted in conducting transactions in the black market by the unregistered banks. This explains the reasons behind dinar's devaluation and the economic crisis.

Iraqis reacted and protested to the central bank asking the government to interfere and halt the rise of the dollar. Mohammed Shia al-Sudani, Iraq’s prime minister, approved the removal of the governor of the Central Bank, but it changed nothing in raising the greenback. Hence, it is hard to predict what is going to happen next, since the U.S.’s reaction and sanctions depend on how Iraq treats its neighbour Iran.