Iraq's currency is dropping fast on the unofficial market, which is bad news for Iraqis holding dinars and for anyone betting on a stronger currency.

• The dinar has slid sharply on the street market over the past two months, well below the official rate.
• Iraq's central bank says its foreign reserves are untouched and it can still cover trade, card payments, and travel at the official rate.
• The bank blames speculation and outsiders trying to destabilize Iraq's economy for its own gain, without naming them.
• A central bank publicly reassuring its own citizens is usually a sign real panic has set in.
• Currency pressure often comes first when one country wants to squeeze another, before politics and fighting follow.

Outlook: With the Middle East still unsettled, the gap between the official and street rate is likely to stay wide, keeping pressure on Baghdad to defend the dinar.