Removal of sanctions on Iraq intensifies effect on the Iraqi Dinar and its economy
Removal of sanctions on Iraq intensifies- effect on the Iraqi Dinar and its economy
More sanctions imposed on Iraq at the beginning of the fall of Saddam Hussein era has been lifted by the United Nations and its member countries, and that has continued to positively affect the economy of the country. The sanctions were imposed as a result of Iraqi’s incursion into Kuwait in 1990, and the penalties invoked by the UN on Iraq is believe to be one of the strictest and most devastating in the history of the UN. At the Initial stages of the lifting of sanctions, the United Nations had in December 2010 lifted ban on Iraq especially on the production of Biological, chemical and Nuclear weapons. Investigations conducted in 2003 has revealed that Iraq no longer possess the active WMD programs as well as any other operational stockpiling of weapon of mass destruction .
Also in 2010, another sanction which forced Iraq into a oil-for-food program was lifted and Iraq does not need to us proceeds from the sale of oil in exchange for food and medicine. After the lifting of the major sanctions which had crippled the economy of Iraq for several years, the United Nations decided to inspect the progress being made in the country, Bagdad also reiterated its commitment to arms disarmament, and allowed more international agencies to inspect its nuclear facilities and after findings were made, Iraq was given a clean bill and that was the beginning of the restoration of the country to its lost glories.
Economic sanctions such as trade barriers are still being lifted on Iraq by the United Nations, these were sanctions that were imposed several years back, and they limited the ability of Iraq to conduct trading with several major European, and Asian countries. The economic sanctions are still being lifted and Iraq is gradually restoring its relations with several countries that had stopped trading with it after the long war. It is expected that Iraq’s foreign investment drive will increase tremendously over the next decade especially when economic and security sanctions has been fully lifted.
One of the benefits of lifting the UN economic and security sanctions on Iraq is that it will increase trade volumes and that will also lead to an increase foreign earnings for the country, an increased foreign earning will naturally lead to the demand for more Dinars which will also lead to an increase in its value.