The global oil markets have faced a major downfall in the prices of crude oil which caused financial and economic crisis in a number of countries. Iraqi officials issued a statement about Gulf States that Saudi Arabia is looking behind the failure of winning the oil prices and economically targeted Iraq. It is also important that the exchange rate value of Iraqi dinar against the U.S dollar was 2.8 U.S dollars per Iraqi dinar during Sixties of the last century. It rose in the Seventies when the United States decided to decrease the value of its currency by 7.9 percent, then its value became at 3.3778 U.S dollars per Iraqi dinar. After a decline of 5 percent in the Iraqi currency, exchange rate recorded at 3.2169 U.S dollars per Iraqi dinar and this exchange rate remained almost same until the second Gulf War in 1991.
The exchange rate of Iraqi dinar against the U.S dollar in 1989 recorded in the black market at three Iraqi dinars per U.S dollar. Most of the experts said that Kuwait took advantage from the war by weakening the Iraqi economy and promised to make the Iraqi dinar as most drowning currency by increasing the volume of oil in the market and improvement in oil exports in the Gulf States until the Iraqi dinar value declined with its lowest level and it became the exchange rate of 1200-1300 Iraqi dinars per U.S dollar. It shows that Iraqi dinar exchange rate against the U.S dollar dropped almost 300 percent.