DINAR REVALUATION REPORT: World Court Approval for RV Initiation in Iraq 2024, 8 SEPT

 World Court Approval for RV Initiation in Iraq 2024

In a significant development, the World Court in The Hague has given the final okay for the RV (Revaluation) to start in Iraq as of 2024. 1

 This decision comes amidst a period of relative stability for the nation, following decades of armed conflict. Iraq has experienced its most stable period since before the US-led invasion in 2003, although the country still faces challenges such as political division and unresolved grievances from the 2019 mass protests.

Under Prime Minister Mohammed Shia al-Sudani's leadership, Iraq has attempted to address key issues including corruption, unemployment, poverty, economic reform, and improving government services. 

His government has also made progress in implementing the Yazidi Survivors Law and enacting a Civilian Protection Policy, although political infighting has hindered the passage of legislation aimed at protecting Iraqis' rights. 1

The International Monetary Fund (IMF) has indicated that Iraq's economic growth is projected to continue, albeit with significant medium-term vulnerabilities to oil price volatility.  6 

Reducing oil dependence and ensuring fiscal sustainability will be crucial, as will facilitating private sector development through reforms in the labor market, financial sector, and restructuring of state-owned banks.

Iraq's Path Forward

Iraq has made several positive strides in respecting and upholding human rights, which are essential for a stable society. However, the country must address the grievances of its citizens more urgently, especially in light of the worsening climate crisis that underscores the need for economic transition and diversification away from fossil fuels. 1

In June 2023, Iraq's parliament approved a three-year annual budget of 198.9 trillion Iraqi dinars (US$153 billion), the largest in the country's history. 1 This budget is intended to support the government's efforts in combating corruption, addressing unemployment, reducing poverty, reforming the economy and finances, and improving government services.

World Court's Role

The World Court's approval for the RV to start in Iraq signifies international recognition of the country's progress and stability. This decision is likely to have significant economic implications for Iraq, potentially leading to increased foreign investment and economic activity.