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View Full Version : With Chapter 7 Lifted, Iraq Regains Control of Its Own Economy



tmorr37
07-09-2013, 03:33 PM
With Chapter 7 Lifted, Iraq Regains Control of Its Own Economy
ERBIL, Kurdistan Region – The lifting of Chapter 7 sanctions last month can be considered one of Iraq’s biggest achievements since the ouster of Saddam Hussein a decade ago, allowing Baghdad to regain control over its own currency, oil and economy.


Chapter 7, imposed on Iraq by the UN Security Council after Saddam’s invasion of Kuwait in 1991, froze all Iraqi assets in international banks, ordering they be used to compensate victims of the aggression. Besides placing limits on use of its wealth, the sanctions also placed limits on the Iraqi military.


One of the biggest advantages of the lifting of the sanctions is the return of all frozen assets to the Iraqi government, estimated at $82 billion, according to Central Bank data. Its return will not only revitalize the economy, it will strengthen the value of the Iraqi dinar and increase its purchasing power.


A few hours after Chapter 7 was lifted, the value of Iraqi dinar increased against other currencies. The exchange rate of dinar is fixed against the dollar, but its value continues to rise. Saif Al-Halafi, an economic and banking expert, expects that the dinar will probably replace the dollar for investments, and that as demand for the dinar rises, so will its value.
http://rudaw.net/english/business/07072013

RoyalBeluga
07-09-2013, 04:09 PM
So everything inside Iraq becomes cheaper making the Iraqi citizens feel richer but to the outside world nothing changes?