Thread: is this how kuwaiti dinar revaled

I hope that no one here expects a letter of intent from Iraq to IMF with the wording " revaluation within 30 days", and that then it would be posted on the IMF website.

Yes, we have to read between lines, and that's called " speculation". That's why we are here.

Originally Posted by rvalreadydang

Actually it's facts (from news articles) mixed with speculations....so this is a good place, the rumor thread. I guess that would make them factulations? LOL....it's about the only way we can make heads or tails of it all!

......Flatulations.....

Originally Posted by ATMCSMD

I'm speaking only of that one sentence where it says the main reason for a letter of intent is for 1 big increase. I don't think that it is fact even though it is stated as such. I think it is purely opinion.

You are correct it's his opinion, though I feel it is a sound opinion based on article IV[four] of the Articles of Agreement of the International Monetary Fund.

I put together the news article that speaks of completing the program and its proposed meetings for later this month and early May along with article IV [four] and its sub-schedule 'C' It concerns itself with setting par value exchange rates for global trade.

If a change is to be made in the exchange rate then the IMF would have to be notified as is stated in Section 2. General exchange arrangements.
The notification would be geared to announce a "change" and slow growth is not change. So one could conclude with the suggestion by the IMF of meetings to "to discuss Article IV of the Convention and the completion of the current program" might in fact mean to close the book on the "Program" discussed many times in IMF documents, SBA etc. and its program rate. The fact that article four is exclusive to exchange rate regime weighs heavily on that conclusion. I agree with Adster, Neno and many others here.

Anyway, here is the trio of documents. It's a good read:


Chaired by Mr. Zubaidi Baqir Jabr, the Minister of Finance
(Voice of Iraq) - 16 - 04-2007

The name of God the Merciful
The Ministry of Finance
Media Bureau
Numbers :
History :


A press
بغـــــــــــــــــد اد
16/4/2007

Chaired by Mr. Zubaidi Baqir Jabr and Minister of Finance Iraqi delegation to attend a meeting of Governors of the World Bank held in Washington 0

The Minister of Finance, Mr. speech at the beginning of the meeting in which he thanked the International Monetary Fund for hosting the Iraqi delegation explaining the latest economic developments in Iraq, explaining the reasons for the failure to achieve rates of implementation of the budget for 2006, which amounted to the highest implementation rates for the ministries of 50% due to the security situation, which greatly impaired the companies Iraqi and foreign entry in the field or processing of contracts as well as the lack of flexibility and instructions to execute the contracts that were inherited from the former regime has released funds in the 2006 budget for the month of July of that same year, which means that the ministries did not take enough time to implement their budgets and the lack of expertise

The lack of middle echelon cadres are capable of implementing such projects led to the delay in implementation of the Economic Committee under the chairmanship of Deputy Prime Minister Barham Ahmed Salih take measures to accelerate the implementation of the budget and encourage units expenditure on implementation why funds launched soon to ratify the 2007 budget at the end of the second month and balancing Act 2007 in the text of Article 14 that the ministries will implement 25% of their budgets until July 2007 allocations will be transferred to other ministries capable of implementation have been held by the Ministry of Finance recently held for nine ministries attended the service and 80% of the cadre and the Ministry of Finance to discuss those ministries in the implementation of projects have surprised us by the Minister of Communications that he had carried out 90% of its budget for 2007 0


At the end of his speech, the Minister of Finance that the current year will be much better than the previous year's rate of implementation of the budget 0-1

The Finance Minister, Mr. extinguishing debt on the theme that there are Iraqi good signs from the Kingdom of Saudi Arabia to discuss the Iraqi debt extinguishment stressing that the ratio of debt reduction to 80% instead of 100% is the proportion of non-acceptable to the Iraqis because their debts and their words were for amounts in support of the war with Iran, which Saddam DISCORD point, a very important point for us and the Iraqi Allmwatuna 0

And Mr. Sinan Shabibi governor of the Central Bank of Iraq one of the members of the Iraqi delegation that there are good developments such as the inflation rate, which is currently 23%, stressing that there is disparity in the level of interaction with debts of Iraq and asked the Iraqi Central Bank governor says that the International Monetary Fund that the exemption of Iraq debt issue interest Fund and encourage and help Iraq and the IMF to complete their programs in Iraq 0

Mr. Khan and Chief of Staff of the International Monetary Fund the Fund optimism of good economic policy in Iraq and here that Iraq's record of achievements, stressing the need to reduce inflation and economic implementation of the budget and raise the rates, especially the implementation of the investment budget for the oil sector to increase production rates, he said, pointing out that next September will need to Iraq the Convention on the (SBA) from September 2007 to December 2008 in order to enjoy exemptions provided by the Paris Club and comes after the end of this Convention and the first implementation of the Convention Iraq each state 0

The IMF suggested that there be a meeting in Amman short end of this month and another meeting in mid-May to discuss Article IV of the Convention and the completion of the current program 0

He promised to the International Monetary Fund announced that the economic developments in Iraq in Sharm El-Sheikh meeting, where support Iraq's economic confident steps despite all the challenges facing Iraq and the economic policy is working smoothly with the fund, the World Bank has reported that 0

The meeting was attended by Mr. Sinan Shabibi governor of the Central Bank of Iraq and adviser to Mr. Vice President and Mr. Vice Governor of the Central Bank and advisor of the Office of the Deputy Prime Minister and senior officials from the International Monetary Fund






Article IV - Obligations Regarding Exchange Arrangements

Articles of Agreement: Article IV: Obligations Regarding Exchange Arrangements

Section 1. General obligations of members
Recognizing that the essential purpose of the international monetary system is to provide a framework that facilitates the exchange of goods, services, and capital among countries, and that sustains sound economic growth, and that a principal objective is the continuing development of the orderly underlying conditions that are necessary for financial and economic stability, each member undertakes to collaborate with the Fund and other members to assure orderly exchange arrangements and to promote a stable system of exchange rates. In particular, each member shall:
(i) endeavor to direct its economic and financial policies toward the objective of fostering orderly economic growth with reasonable price stability, with due regard to its circumstances;
(ii) seek to promote stability by fostering orderly underlying economic and financial conditions and a monetary system that does not tend to produce erratic disruptions;
(iii) avoid manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage over other members; and
(iv) follow exchange policies compatible with the undertakings under this Section.




Section 2. General exchange arrangements
(a) Each member shall notify the Fund, within thirty days after the date of the second amendment of this Agreement, of the exchange arrangements it intends to apply in fulfillment of its obligations under Section 1 of this Article, and shall notify the Fund promptly of any changes in its exchange arrangements.

(b) Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include (i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator, other than gold, selected by the member, or (ii) cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, or (iii) other exchange arrangements of a member's choice.

(c) To accord with the development of the international monetary system, the Fund, by an eighty-five percent majority of the total voting power, may make provision for general exchange arrangements without limiting the right of members to have exchange arrangements of their choice consistent with the purposes of the Fund and the obligations under Section 1 of this Article.

Section 3. Surveillance over exchange arrangements
(a) The Fund shall oversee the international monetary system in order to ensure its effective operation, and shall oversee the compliance of each member with its obligations under Section 1 of this Article.
(b) In order to fulfill its functions under (a) above, the Fund shall exercise firm surveillance over the exchange rate policies of members, and shall adopt specific principles for the guidance of all members with respect to those policies. Each member shall provide the Fund with the information necessary for such surveillance, and, when requested by the Fund, shall consult with it on the member's exchange rate policies. The principles adopted by the Fund shall be consistent with cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, as well as with other exchange arrangements of a member's choice consistent with the purposes of the Fund and Section 1 of this Article. These principles shall respect the domestic social and political policies of members, and in applying these principles the Fund shall pay due regard to the circumstances of members.

Section 4. Par values
The Fund may determine, by an eighty-five percent majority of the total voting power, that international economic conditions permit the introduction of a widespread system of exchange arrangements based on stable but adjustable par values. The Fund shall make the determination on the basis of the underlying stability of the world economy, and for this purpose shall take into account price movements and rates of expansion in the economies of members. The determination shall be made in light of the evolution of the international monetary system, with particular reference to sources of liquidity, and, in order to ensure the effective operation of a system of par values, to arrangements under which both members in surplus and members in deficit in their balances of payments take prompt, effective, and symmetrical action to achieve adjustment, as well as to arrangements for intervention and the treatment of imbalances. Upon making such determination, the Fund shall notify members that the provisions of Schedule C apply.
Articles of Agreement: Article IV: Obligations Regarding Exchange Arrangements



Articles of Agreement of the International Monetary Fund Schedule C - Par Values

Articles of Agreement: Schedule C - Par Values

1. The Fund shall notify members that par values may be established for the purposes of this Agreement, in accordance with Article IV, Sections 1, 3, 4, and 5 and this Schedule, in terms of the special drawing right, or in terms of such other common denominator as is prescribed by the Fund. The common denominator shall not be gold or a currency.

2. A member that intends to establish a par value for its currency shall propose a par value to the Fund within a reasonable time after notice is given under 1 above.

3. Any member that does not intend to establish a par value for its currency under 1 above shall consult with the Fund and ensure that its exchange arrangements are consistent with the purposes of the Fund and are adequate to fulfill its obligations under Article IV, Section 1.

4. The Fund shall concur in or object to a proposed par value within a reasonable period after receipt of the proposal. A proposed par value shall not take effect for the purposes of this Agreement if the Fund objects to it, and the member shall be subject to 3 above. The Fund shall not object because of the domestic social or political policies of the member proposing the par value.

5. Each member that has a par value for its currency undertakes to apply appropriate measures consistent with this Agreement in order to ensure that the maximum and the minimum rates for spot exchange transactions taking place within its territories between its currency and the currencies of other members maintaining par values shall not differ from parity by more than four and one-half percent or by such other margin or margins as the Fund may adopt by an eighty-five percent majority of the total voting power.

6. A member shall not propose a change in the par value of its currency except to correct, or prevent the emergence of, a fundamental disequilibrium. A change may be made only on the proposal of the member and only after consultation with the Fund.

7. When a change is proposed, the Fund shall concur in or object to the proposed par value within a reasonable period after receipt of the proposal. The Fund shall concur if it is satisfied that the change is necessary to correct, or prevent the emergence of, a fundamental disequilibrium. The Fund shall not object because of the domestic social or political policies of the member proposing the change. A proposed change in par value shall not take effect for the purposes of this Agreement if the Fund objects to it. If a member changes the par value of its currency despite the objection of the Fund, the member shall be subject to Article XXVI, Section 2. Maintenance of an unrealistic par value by a member shall be discouraged by the Fund.

8. The par value of a member's currency established under this Agreement shall cease to exist for the purposes of this Agreement if the member informs the Fund that it intends to terminate the par value. The Fund may object to the termination of a par value by a decision taken by an eighty-five percent majority of the total voting power. If a member terminates a par value for its currency despite the objection of the Fund, the member shall be subject to Article XXVI, Section 2. A par value established under this Agreement shall cease to exist for the purposes of this Agreement if the member terminates the par value despite the objection of the Fund, or if the Fund finds that the member does not maintain rates for a substantial volume of exchange transactions in accordance with 5 above, provided that the Fund may not make such finding unless it has consulted the member and given it sixty days notice of the Fund's intention to consider whether to make a finding.

9. If the par value of the currency of a member has ceased to exist under 8 above, the member shall consult with the Fund and ensure that its exchange arrangements are consistent with the purposes of the Fund and are adequate to fulfill its obligations under Article IV, Section 1.

10. A member for whose currency the par value has ceased to exist under 8 above may, at any time, propose a new par value for its currency.

11. Notwithstanding 6 above, the Fund, by a seventy percent majority of the total voting power, may make uniform proportionate changes in all par values if the special drawing right is the common denominator and the changes will not affect the value of the special drawing right. The par value of a member's currency shall, however, not be changed under this provision if, within seven days after the Fund's action, the member informs the Fund that it does not wish the par value of its currency to be changed by such action.

Originally Posted by rvalreadydang

Actually it's facts (from news articles) mixed with speculations....so this is a good place, the rumor thread. I guess that would make them factulations? LOL....it's about the only way we can make heads or tails of it all!

FACTULATIONS??

Originally Posted by Jola

I hope that no one here expects a letter of intent from Iraq to IMF with the wording " revaluation within 30 days", and that then it would be posted on the IMF website.

Yes, we have to read between lines, and that's called " speculation". That's why we are here.

Exactly!

Originally Posted by Hardwood

......Flatulations.....

There you go! The best term for it!

Originally Posted by wciappetta

You are correct it's his opinion, though I feel it is a sound opinion based on article IV[four] of the Articles of Agreement of the International Monetary Fund.

I put together the news article that speaks of completing the program and its proposed meetings for later this month and early May along with article IV [four] and its sub-schedule 'C' It concerns itself with setting par value exchange rates for global trade.

If a change is to be made in the exchange rate then the IMF would have to be notified as is stated in Section 2. General exchange arrangements.
The notification would be geared to announce a "change" and slow growth is not change. So one could conclude with the suggestion by the IMF of meetings to "to discuss Article IV of the Convention and the completion of the current program" might in fact mean to close the book on the "Program" discussed many times in IMF documents, SBA etc. and its program rate. The fact that article four is exclusive to exchange rate regime weighs heavily on that conclusion. I agree with Adster, Neno and many others here.

Yes, what wciappetta said!

Originally Posted by Jola

I hope that no one here expects a letter of intent from Iraq to IMF with the wording " revaluation within 30 days", and that then it would be posted on the IMF website.

Yes, we have to read between lines, and that's called " speculation". That's why we are here.

yeppers! and nopers, not expecting any such wording, lol more along the lines of the IMF is proud to present a prosperous and happy future for those danged pesky investors!!

The RV is scheduled to happen at 12:01 am on April 30th. The rate will be $1.95 per dinar.

Oh, by the way..that's just my opinion.