DINAR REVALUATION REPORT: Iraq Takes Control—Chapter VII Ends, 8 SEPT

 Iraq Takes Control—Chapter VII Ends

In a significant move that has garnered attention, Iraq is regaining full control of its currency and economy as of September 8, 2024. 1 Washington has ceased the automatic deductions from Iraqi oil revenues that were previously used to pay Kuwait, lifting a substantial financial burden on the country. 3

The cessation of these payments signifies the collapse of Chapter VII sanctions, which means Iraq now has true sovereignty over its resources and economy. 4The global shift in Iraq's economic landscape is happening right before our eyes. 5

Background on Chapter VII Sanctions

Chapter VII sanctions were initially imposed on Iraq by the United Nations Security Council (UNSC) following the Iraqi invasion of Kuwait on August 6, 1990. 1 

The sanctions largely remained in place until May 22, 2003, after Saddam Hussein's regime was overthrown, and continued to some extent, including reparations to Kuwait. 1

 The original intent of the sanctions was to compel Iraq to withdraw from Kuwait, pay reparations, and disclose and eliminate any weapons of mass destruction (WMD). 1

Iraq's Path to Sovereignty

The UNSC's decision to remove Iraq from Chapter VII sanctions on June 27, 2013, underscored the country's increased cooperation with its neighbors and marked the end of Saddam Hussein's legacy of aggression. 2 

This decision was based on Iraq's progress in addressing issues of missing Kuwaiti persons and property, which were then dealt with under Chapter VI of the U.N. Charter, promoting peaceful resolution of conflicts.  2

Impact on Iraq's Economy

Years of wars and economic sanctions had previously made the Iraqi monetary system vulnerable to international influences, rather than local necessities. 3However, with the end of Chapter VII sanctions, Iraq can now implement monetary policies that better align with its domestic needs and reduce dependency on external dictates. 3

New Iraqi Landscape

The renewal of Executive Order 13303 and the legacy of the Iraq War have shaped Iraq's future amidst regional and international power dynamics. 5 Iraq's sovereignty and economic control are now pivotal in navigating internal demands and external pressures. 5

Conclusion

Iraq's journey to regain control over its currency and economy marks a significant milestone in its history. With the end of Chapter VII sanctions, the country can now focus on strengthening its internal economic policies and asserting its sovereignty in the global arena.