Year 2022 Saw Erosion of Middle East National Currencies

Year 2022 Saw Erosion of Middle East National Currencies

The year 2022 witnessed an unprecedented decline in the exchange rates of a number of national currencies in some Middle Eastern countries, most notably Egypt, Türkiye, Sudan and Iraq. The value of some of the region’s currencies fell against the US dollar, while others saw very sharp deteriorations, as is the case of the Iranian rial and the Lebanese pound.

Despite the diversity of the reasons that led to these declines, including political and economic conditions, and the monetary policy of central banks, a number of common factors contributed to this situation, mainly the continuous and accelerated rise in interest rates and mounting inflation, as well as political tensions and black market speculations and manipulations.

According to a study conducted by Asharq Al-Awsat, the region’s currencies have significantly eroded in value. The Egyptian pound has lost 58 percent of its value against the US dollar since the beginning of 2022.

Similarly, the Turkish lira fell against the dollar by 41 percent, and the Iraqi dinar recorded a decline against the dollar with a high fluctuation rate of 14 percent.

The exchange rate of the Iranian rial witnessed severe turmoil at the end of this year, sharply declining before returning to stability with a slight