War against IS-militants harming Iraq's currency

Iraq's currency, the dinar, has depreciated over 15 percent since the beginning of this year, increasing the price of commodities in the country. Analysts say the country's currency depreciation is partly caused by the government's war against Islamic State (IS) militants, who have taken control over key areas in Iraq, including the oil-producing city of Kirkuk and the Fallujah dam, which has a direct impact on the country's pillar industries - oil and agriculture.
Mohammed Saleh, an economic analyst, said, "Because of IS, we have lost some GDP, at least 10 percent to 15 percent a year. Those places [occupied by IS] have been out of control of the country's macro economy, so the loss is inevitable.”
Military expenditure is a significant strain on the struggling economy with frequent battles and low oil prices. The global slump in oil prices has posed a serious threat to Iraq's fiscal revenue, which relies heavily on oil exports.
Economist Hussein Alawi al-Najem said, "Usually, military expenditure accounts for 10 percent to 25 percent of the economy, but now this number has amounted to 75 percent in Iraq.”
Analysts have pointed out that despite the current crisis, Iraq still has $80 billion in federal reserves, which will help to stabilize the currency when necessary.