What does Iraq's exit from "Article VII" sanctions mean?
What does Iraq's exit from "Article VII" sanctions mean?
On Tuesday, Foreign Minister Fouad Hussein announced that Iraq had left Chapter VII procedures, after paying all of its financial obligations, while the State of Kuwait congratulated Iraq on exiting from Chapter VII of the United Nations, by completing the file for paying financial compensation.
Iraq’s final exit from Chapter VII, meaning many positives, and here we review the benefits of this historic decision, especially the economic and political benefits of this important step, as it will enable Iraq to recover its frozen funds, and end the tax paid by the people as a result of the practices of the previous regime.
Since 1990, Iraq has been subject to Chapter VII of the United Nations Charter imposed on it after the previous regime invaded the State of Kuwait in August of the same year. This chapter allows the use of force against Iraq as it constitutes a threat to international security, in addition to freezing large sums of its financial balances in banks. world to pay compensation to those affected by the invasion.
Legal Status
In terms of the legal situation, Iraq's exit from Chapter VII will restore its legal status in the international community, to what it was before Security Council Resolution No. 838 of 1993, which was issued as a result of the invasion of the former regime of the State of Kuwait.
It will also restore its absolute legal status in the international community, to what it was before Security Council Resolution No. 838 of 1993 as a result of the entry of the former regime into Kuwait, and that Iraq's fulfillment of its obligations calls on the United Nations to lift the guardianship of Iraqi funds frozen abroad, so that the Iraqi will return to its money and right It is a sign of hope that opens new horizons in dealing with the countries of the world in the areas of development and investment.” A
pivotal role
Iraq's exit from Chapter VII means that Iraq will expand its role among the countries of the world after its exit from Chapter VII due to its ability and efficiency at the political and diplomatic levels, as Iraq is ready to be the weight-bearing egg in global discussions and meetings, and it is the leader of the Arab countries in this regard.
Iraq is also different from the Arab countries in many military, cultural and political fields, and one of the first countries to renounce terrorism.”
financial breakthrough
In the same context, Iraq's exit from the provisions of Chapter VII, means liberation from economic determinants, which were the cause of delaying the provision of services to citizens.
And that Iraq’s salvation from the consequences of the provisions of Chapter VII is a departure from the economic determinants that were the reason for the delay in providing services to citizens and will enable Iraq to manage its affairs without any determinants that would be a reason for delaying the provision of services and infrastructure projects that all cities of Iraq need.
Full Sovereignty
Exiting Chapter VII means full sovereignty, because Iraq's survival under its control means remaining under the tutelage of the United Nations and the Security Council.
Iraq had been placed under this chapter on the grounds that it violated international security as a result of the wars of the former regime, and in short, exiting from Chapter VII means liberation from all political, economic and diplomatic restrictions and many other matters that develop the Iraqi situation externally and internally and its reflection on the introduction of investments into Iraq including It achieves a positive impact on the country's security and economy, according to what the Director of the Iraqi Center for Strategic Studies, Dr. Ghazi Faisal, told Tigris.
VN likely to be upgraded to an emerging market after KRX system installed
The stock trading board inside the Hồ Chí Minh Stock Exchange (HoSE).
Experts believe that once the KRX trading system begins official operations, many international organisations will re-evaluate the Vietnamese market to upgrade it to an emerging market.
Speaking at the Financial Street Talkshow last week, Dương Ngọc Tuấn, Deputy General Director of the Việt Nam Securities Depository (VSD), said that solutions for the new information technology system, T+0 day trading mechanism and other solutions to help upgrade the market will be implemented this year. In addition, new products, especially products for the domestic derivatives market, are allowed to develop.
Tuấn also revealed the plan to submit to the Government the market development strategy project for 2021-2030, which sets out roadmaps for development in all aspects, helping market activities become more active and sustainable.
The KRX trading system, provided by South Korea’s bourse operator, the Korea Exchange (KRX), can handle 3-5 million orders per day, aiming to tackle system overloads which had troubled investors last year. It is expected to be completed and run in the first half of 2022 after a pause last year due to the COVID-19 pandemic.
Lê Chí Phúc, General Director of SGI Investment Fund Management JSC (SGI Capital), said that it is necessary to introduce the new KRX trading system soon, so all participants in the market can proactively make their own plans in product development, as well as attracting new customers.
“When the KRX system is officially put into operation, many international organisations will re-evaluate the Vietnamese market to upgrade it to an emerging market,” Phúc said.
Similarly, in its base scenario, VNDirect Securities Corporation said that if Việt Nam completes the implementation of the new trading system in the first half of 2022, the country’s market could be included on the MSCI (Morgan Stanley Capital International)’s watch list for upgrading to an emerging market in its annual market assessment in May 2023. Việt Nam may then be notified of its upgrade to emerging market during the MSCI annual market review in May 2024.
Meanwhile, in the optimistic scenario, VNDirect said that the FTSE (Financial Times Stock Exchange) may announce the inclusion of the Vietnamese stock market in the secondary emerging market group during its annual market review in September 2022.
Although it has not been officially recognised as an emerging market, the domestic market has achieved many criteria such as liquidity surpassing that of many other emerging markets in 2021, ranking only second in ASEAN after Thailand. Many large funds in the world specialising in investing in emerging markets have also begun to show up in Việt Nam, the leader of SGI Capital added.
According to Phúc, if other solutions are followed such as continuing to maintain and further improve asset quality, the prestige of the Vietnamese market will increase.
On the other hand, up to now, the criteria for organisations to evaluate updating Việt Nam into the emerging market category have reduced a lot. The remaining issues are only technical and will be solved, Tuấn said.
On the foreign capital flows front, both Tuấn and Phúc agreed that the cash flow into the market recorded the strongest growth in more than two decades. Of which the majority was cash flow from domestic investors and lacked cash flow from foreign investors.
Although domestic investors in the past two years have played a leading role in the market, experts say that foreign capital flows cannot be ignored, because this is an essential factor for any stock market.
“Foreign capital inflows will bring great and potential financial resources,” Tuấn said.
“The participation of major international investors will play a significant role in leading the investment trend, bringing a lot of experience and international practices to make the market more active and healthy.
Meanwhile, Phúc said Việt Nam needs both domestic and foreign capital flows to develop the market, as well as develop businesses.
New technologies, the experience of foreign investors and international standards they bring into the market will help the country connect with the world in a more comprehensive way.
The Iraqi government is sticking to the dollar exchange rate against the Iraqi dinar
The office of the Iraqi Prime Minister, Mustafa Al-Kazemi, confirmed on Tuesday that with the dollar's exchange rate against the Iraqi dinar, it will remain.
Today, Adviser to the Prime Minister for Economic Affairs, Mazhar Muhammad Salih, said that monetary policy is what determines the exchange rate according to the law of the Central Bank of Iraq, but unfortunately there have been many interventions, adding that the bank has an understanding and determination to maintain the stability of the Iraqi dinar exchange rate at its current price of 147 thousand Iraqi dinar for a hundred dollars.
He said that coordination between monetary policy and fiscal policy in a rentier country such as Iraq is very important, especially that the supporting reserves of the Iraqi dinar come from the Ministry of Finance.
Parliamentary calls were made to reduce the exchange rate of the dollar to 125,000 dinars for each category of one hundred dollars, as it was before it was raised in 2020 to protect the poor classes of society.
The Minister Of Foreign Affairs Announces Iraq's Exit From Chapter VII Procedures
The Minister of Foreign Affairs, Fuad Hussein, announced today, that Iraq has exited from Chapter VII procedures after paying all the debts it owed to Kuwait.
Hussein said in his speech before the Security Council, and followed by “Earth News”, that “Iraq today turns an important page of its history that lasted for more than thirty years. Today begins a new page of Iraq’s diplomatic, political and economic history that enhances its regional and international role.”
He added, "There are clear indications that Iraq has fulfilled all its international obligations under the relevant Security Council resolutions, as it paid the last payment in accordance with its financial obligations and paid the full amount of compensation due to it, which is (52.4) billion US dollars, and is no longer required to pay any additional amounts of money in the future. or dealing with Chapter VII procedures.”
And he indicated that "the Iraqi government confirms that working with the United Nations Compensation Committee and your esteemed council was a successful model for multilateral work and enhances confidence in international mechanisms and procedures in settling crises, as Iraq continued to fulfill these obligations fully in accordance with the timetables and percentages approved by the Compensation Committee despite the difficult circumstances that have passed. It will take its role at the forefront of the world’s countries to confront the terrorist gangs of ISIS and recover cities from the organization’s control.”
He pointed out that "the Government of Iraq considers the full fulfillment of its international obligations towards the international community and the sisterly State of Kuwait as a major development that would strengthen Iraq's relations with its regional and international surroundings, and Iraq sought to complete this unique model of work, international effort and joint cooperation under the frameworks and mechanisms of the nations." United".
And he added, "Iraq, through its full fulfillment of its international obligations, highlighted an international legal and moral obligation on the international community and the United Nations, which is to remove Iraq from all Chapter VII procedures, preserve Iraq's rights and money and its international legal entitlements, and protect it from any future claims within the framework of the international effort led by the United Nations." .
Your Excellency Mr. Vasily, President of the Security Council, Your
Excellencies the distinguished members of the Council , may the
peace, mercy, and blessings of God be upon you…
I have the honor to begin my speech as a representative of my country, by congratulating the State of the Russian Federation for assuming the presidency of the Security Council for the month of February, wishing the Permanent Representative of Russia success in this endeavor. the mission.
I also extend my thanks and gratitude to the Kingdom of Norway for assuming the duties of managing the presidency of the Security Council for the past month.
As well as thanks and gratitude for the briefing given by the Chairman of the Board of Directors of the United Nations Compensation Commission.
Mr. President…
Today, Iraq turns an important page of its history that lasted more than thirty years, and a new page begins in Iraq’s diplomatic, political and economic history, a page that strengthens its regional and international role in proportion to its history and cultural weight on the map of the region and the world, as an effective state consistent with the aspirations and goals of the international community Iraq seeks to strengthen cooperation frameworks with the international community, led by the United Nations, considering that Iraq is one of the founders of this organization and the signatories to its charter on October 14, 1945, and in order to restore its role as an effective and responsible member of the international community.
Mr president …
According to the final report issued by the United Nations Compensation Commission, and the briefing given by the Chairman of the Committee's Board of Directors, and the clear indications it contained on Iraq's fulfillment of all its international obligations under the relevant Security Council resolutions, Iraq has paid the last payment in accordance with its financial obligations and paid in full. The amount of compensation owed by him, which is (fifty-two point four) billion dollars, through the United Nations Compensation Committee, which was distributed to (one point five million) claim from all categories of claims, and according to what was stated in that, and the wording of the paragraphs of the Council’s resolution was approved The security approved in this session, and as a reminder of all relevant Security Council resolutions, the Compensation Committee has fulfilled its mandate in full, and has completed consideration of any future claims on the issue of compensation, and Iraq is no longer required to pay any additional sums of money in the future, or deal with Chapter VII procedures.
In this context, my country's government affirms that working with the United Nations Compensation Commission and your esteemed council has been a successful model for multilateral action, a model that enhances confidence in international mechanisms and procedures in settling the crises that have afflicted and afflicted our world until today, and through this international mechanism and out of respect Iraq has fulfilled its obligations under the relevant Security Council resolutions and fully assumed its responsibilities, Iraq continued to fulfill these obligations in full in accordance with the timetables and percentages approved by the Compensation Committee, despite the difficult circumstances that Iraq experienced in the previous years of bearing the burdens and economic costs of fighting terrorism and taking its role at the forefront of the countries of the world To confront the terrorist gangs of ISIS and recover the cities from the organization’s control, the costs of the programs to return the internally displaced to their cities, the programs to restore stability, services, provide aid and the costs of reconstruction, which were accompanied by a significant decrease in the prices of global oil sales.
In this regard, the Government of Iraq considers the full fulfillment of its international obligations towards the international community and the sisterly State of Kuwait, as a major development that would enhance Iraq's relations with its regional and international surroundings, as well as the Iraqi-Kuwaiti historical relations, and move them to broad future horizons based on trust and equal bilateral relations. .
Mr president …
Iraq has sought to complete this unique model of work, international effort and joint cooperation under the frameworks and mechanisms of the United Nations, through its full fulfillment of its international obligations, which in turn highlighted an international legal and moral commitment to the international community and the United Nations, which is to remove Iraq from all procedures of Chapter VII, and to preserve Iraq’s rights, funds and international legal entitlements, and its protection from any future claims within the framework of the international effort led by the United Nations, based on the Charter of the United Nations, the rules of international law and the general principles of international law in justice and equity, which enhances confidence in these UN mechanisms. This is what we were keen to confirm and defended hard to include it in the UN Security Council resolution in cooperation with the (British) pen holder and the rest of the Security Council members. As this international effort will not have completed its success until after Iraq's legitimate demands are embodied and included in the UN Security Council resolution.
Mr. President…
My country’s government confirms, in light of the historical and legal vision that we have presented, that Iraq is looking forward in this regard and of great importance, for your esteemed council to assume its historical responsibilities, so that closing this file will reflect positively on Iraq in its regional and international relations, specifically with neighboring countries. Continuity is the lesson of matters in their conclusions, meaning that the success of work is always measured by its conclusions, results, outputs and positive repercussions on peoples and countries.
In conclusion… Allow me, Mr. President, to express our thanks and appreciation to you and the other members of the Council, and to the pen-holder, the esteemed British mission, which engaged in intensive negotiating rounds with the Iraqi mission, and to all the friendly countries that provided support to my country to overcome this historical era that was bitter for me. The peoples of the region, as well as our thanks and appreciation to the State of Kuwait, the leadership and people.
We congratulate the Iraqi people and their government for the termination of these international obligations, and for Iraq’s exit from the procedures of Chapter VII, and we extend our thanks and pride to those in charge of Iraqi diplomacy, especially the permanent Iraqi mission in New York for its tireless efforts in negotiations to include Iraq’s legitimate demands in the resolution, wishing continued prosperity, prosperity and progress for the people of Iraq and the peoples of the region and the world.
Thank you, Mr. President.
A deputy talks about a reason that prevents the return of the dollar exchange to its previous price
Member of Parliament, Jamal Cougar, confirmed today, Tuesday, that the price of the dollar will not change during the coming period.
Cougar said in a press statement, "It is not within the powers of the political blocs to return the exchange rate, and they must not interfere in this matter because it is a specialized political and financial issue and not an issue of electoral promises."
He added, "The Central Bank and the Ministry of Finance confirmed that there is no change in the exchange rate, not only for this year, but may extend for three years."
Cougar added, "The new government may take action to change the exchange rate if it has a different viewpoint."
What Happens If The Dollar Sale Window Stops? .. An Economist Answers
On Tuesday, the professor of economics at the University of Basra, Nabil Al-Marsoumi, expected the possible scenario in the event that the window for selling the dollar in Iraq was stopped.
Al-Marsoumi said, in a Facebook post, which was seen by / the information / that “the oil dollar that the Ministry of Finance sells to the Central Bank of Iraq, which is almost the only source of supply for the dollar in Iraq, and when the window for selling the dollar in the Central Bank stops, the dollar supply will drop to almost zero, which means Floating the Iraqi dinar.
He added, "The dinar exchange rate will roll down to very low levels that may reach the level of 4000 dinars against the dollar, i.e. to a lower level than the levels of the economic blockade in the nineties due to the large volume of imports in Iraq, which exceeds 40 billion dollars annually, and because the population today has increased By about 20 million people, and that people’s needs have varied and increased, and most of them come from abroad, and therefore the volume of imports has doubled several times compared to the time of the siege.”
He considered that “the call to abolish the currency sale window, which is the only supporter of the dinar exchange rate, is a kind of absurdity or economic adolescence at best, but what is required today is to regulate the foreign exchange market in Iraq and to confront the worsening cases of corruption in it, which amount to billions of dollars annually.”
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