With all the confusion that stems from information found via translated pages on the net, it’s nice to see an article and a statement of this caliber posted on a major network. As reported on Fox News.com yesterday, Iraqi Prime Minister Nouri al Maliki is visiting the UN today to meet with U.N. Secretary-General Ban Ki Moon. Tomorrow he will be meeting with US President Obama.
Iraqi Foreign Minister Hoshyar Zebari told Fox News that Ban Ki Moon would be presenting a report to the Security Council next week and Iraq will be released from all 73 UN resolutions and Chapter 7 sanctions “this summer”.
Iraq is currently forfeiting 5% of their oil revenues to Kuwait as part of the Chapter 7 arrangements, but Zebari says:
“Coming out of Chapter 7 will not disadvantage our Kuwaiti brothers,”
My question regarding that statement is this: While it may not disadvantage Kuwait, if Iraq is no longer forced to pay that 5%, isn’t that a less desireable situation for Kuwait? What does Kuwait have to gain by going along with releasing Iraq from Chapter 7, when they are collecting 5% while Iraq stays under Chapter 7?
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9 responses to "Iraqi Foreign Minister Zebari confident Chapter 7 will be lifted “this summer”"
Here’s the link to the Fox News Article: http://www.foxnews.com/politics/2009/07/21/iraq-hopes-sanctions-lifted-maliki-arrives/
There has to be somethiong in it for Kuwait. My guess is a trade deal with Iraq whereby the countries buy and sell as needed to supplement their economies. As Iraq pulls together and grows, it will become a buyer internationally. And to facilitate such an arrangement, it would seem that the Iraq dinar would become exchangeable internationally. I’;m an optimist.
Marv
I agree with the principle, Marv… but I think Adam might be right. It would be great to see Iraq moving forward and becoming a real player, purchasing goods etc… but will that really benefit Kuwait as much as 5% of their oil revenues?
m so dumb, to what this all means, but I hope that it will have something to do with the dinar becoming an international currency, so in short I agree with Marv.
Look at this:
http://www.reuters.com/article/newsOne/idUSTRE56L4PJ20090722
“Kuwait strongly opposes ending Iraq’s Chapter 7 status and has so far successfully lobbied Security Council members. But council diplomats say they may vote to lift the restrictions at the end of this year, which would enable Iraq to renegotiate the amount of reparations it pays to Kuwait.
Iraq has said it still owes $25.5 billion in reparations, $24 billion to Kuwait alone.
Relations between Iraq and Kuwait have become tense recently, with politicians in both countries trading accusations over the reparations.”
There must be a misconnect somewhere.
FROM THE PRESS CONFERENCE SEEN IN THE ROSE GARDEN TODAY, THE QUESTION CAME UP ABOUT THE SANCTIONS AND MALIKI TOLD THE PRESS, WHILE WORKING WITH THE UNITED NATIONS, IT WOULD PROBABLY NOT COME TIL THE FALL.
Could this mean that they are expecting to increase the value of the Dinar by the end of the year? I couldn’t think of any other reason to lose their 5% can you?
[...] The last Dinar Speculation article talking about Chapter 7 and why Kuwait would not want to let Iraq out of Chapter 7 is being confirmed with a few new articles released today. See the original article on DinarSpeculation and make comments here. [...]
If Kuwait remains intransigent, will that delay revaluation of the Iraq dinar? Or, if the revaluation occurs with Chapter 7 stiil in place, would it be lower than the value it would reach if Chapter 7 were ended?
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