DINARESGURUS.BLOGSPOT.COM__________________________

Wednesday, August 2, 2017

KTFA UPDATE, 2 AUGUST

KTFA:

DELTA:  OK FAMILY THERE IS THE LINK THAT I TALKED ABOUT. THE CBI DID ADD IT  IN ENGLISH TODAY......... WHEN YOU CLICK ON LINK YOU WILL SEE ..CURRENCY ISSUANCE EXPENSES FROM MAY 31ST, TO JUNE 30TH

CAN I HAVE A NEW RATE NOW!!! lol

 Financial Situation Tables for June 2017

************

Boxman:   financial situation tables for june 2017

Has a line item labeled....CURRENCY REVALUATION INCOME FOR THE CURRENT YEAR...its a very large number..

Located in the comprehensive section of the table..in the post presented by Delta above

DELTA: Shhhhhhh (smile)

Mally:   Thank you Delta!  Isnt this listed in Dinar though?  A little over 5 million dinar spent on issuing new currency, not usd?

DELTA:  X1000 DINAR=5 BILLION DINAR=AROUND $5 MILLION FOR JUNE!!!

************

Stranger:  DELTA Wrote:    TRUE RATE...... INTERNATIONAL!!!  

What is an International "True Rate"?  We've been hearing for a long time with consistency, what it would be when it went "International"....

Going back in time review these comments (June 1, 2016) about "TRUE RATE" ...I found one or two other references on CC's but only looked at about 3 months of CC's to find this....

IMO....."TRUE INTERNATIONAL RATE" is explained here with further comments describing it, in the same CC......(I think it is good to jog our memories...hope it is of value to some as prayerfully it seems to be written for this time NOW, even though it was studied and said a year ago)....

DELTA...
.they have to get these things done….one of them is the currency reform where they must come up with a true rate…and they have to accept Article 8….so this letter being submitted will be exactly the same as Iraq accepting Article 8…right….so by the end of the month of June then…the IMF board will look at all of what Iraq has said they have done….and one is the currency reform and the establishment of the true value of the Iraqi dinar
........
DELTA:  Absolutely Frankie….but I would like to add that even though it is showing 1 to 1 I believe it will come out even higher….because remember they have to add inflation into it…..so we could see “out the door” more than one dolloar….maybe 1.15 or 1.20….even up to 1.42 is possible….because of them adding inflation…..so 1 to 1 would be the bare minimum we could see….and the other reason I think we will see it come out higher than 1 to 1 is that at that rate it is what the Iraqi citizens are used to seeing….a dollar….but anything higher will be very good for them….IMO I think we will see 1.13-1.20 after inflation is added to it.
......
Frank:  You remember when we were talking to an unnamed person….I said IMO I see it as 1 to 1….logic says 1 to 1….Jack Lew’s homework says 1 to 1…..simple math says 1 to 1….and then they said to us it will be higher than 1 to 1….remember that.

************


Jonlrv:  IMF description of today's meeting.

August 01, 2017

Country: Iraq

Title: Iraq - 2017 Article IV Consultation and Second Review Under the Stand-By Arrangement

I have copied the Article IV from the IMF official articles of agreement, it's regarding exchange rates. It's on page 5 of the link, it's easier to read there because it didn't paste with correct formatting. Sorry, I didn't have time to fix it. IMO, I feel like this is really positive.

http://www.imf.org/external/pu.....pdf/aa.pdf

"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; Art. III, Sec. 4 Art. IV, Sec. 1 IV. Obligations Regarding Exchange Arrangements 6 (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 Art. IV, Sec. 2–3 IV. Obligations Regarding Exchange Arrangements 7 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.

Section 5. Seprate currencies within a member’s territories (a) Action by a member with respect to its currency under this Article shall be deemed to apply to the separate currencies of all territories in respect of which the member has accepted this Agreement under Article XXXI, Section 2(g) unless the member declares that its action relates either to the metropolitan currency alone, or only to one or more specified separate currencies, or to the metropolitan currency and one or more specified separate currencies. (b) Action by the Fund under this Article shall be deemed to relate to all currencies of a member referred to in (a) above unless the Fund declares otherwise."

Hope this helps
*************

McDan:  IMF Executive Board Completes Second Review of Iraq’s Stand-By Arrangement and the 2017 Article IV Consultation

August 1, 2017

The authorities are appropriately maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy.

Measures to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation need to be implemented.

The authorities are implementing a sizable fiscal adjustment, mostly through retrenchment of inefficient capital expenditure while protecting social spending.

The Executive Board of the International Monetary Fund (IMF) today completed the second review of Iraq’s three-year Stand-By Arrangement (SBA), which is designed to support Iraq’s economic reform program and restore fiscal balance over the medium term.

The completion of the second review allows the authorities to draw the equivalent of SDR 584.2 million (about US$ 824.8 million), bringing total disbursements to SDR 1494.2 million about US$ 2109.7 million. The SDR 3.831 billion arrangement (about US$5.34 billion at the time of approval of the arrangement) was approved in July, 2016 (See Press Release No. 16/321) and the first review was completed on December 5, 2016 ( See Press Release No. 16/540).

As part of the completion of the second review, the Board also approved Iraq’s request for waivers of non-observance and applicability of performance criteria, and modification of performance criteria. Further fiscal consolidation was achieved in 2016, but at a slower pace than programmed because of weak control of investment expenditure and humanitarian needs. To move the program forward, the authorities are implementing strong corrective measures as prior actions and are committed to further fiscal measures in 2018 to ensure external and debt sustainability.

The Executive Board today also concluded the 2017 Article IV Consultation with Iraq. A respective press release will be issued separately.

Following the Executive Board’s decision, Mr David Lipton, First Deputy Managing Director, issued the following statement:

The economic policies implemented by the Iraqi authorities to deal with the shocks facing Iraq—the armed conflict with ISIS and the ensuing humanitarian crisis and the collapse in oil prices—are appropriate. In the fiscal area, the authorities are implementing a sizable fiscal adjustment, mostly through retrenchment of inefficient capital expenditure while protecting social spending. The authorities are appropriately maintaining the peg of the Iraqi dinar to the U.S. dollar, which provides a key anchor to the economy. Performance under the Stand-By Arrangement has been weak in some key areas, but understandings have been reached on sufficient corrective actions to keep the program on track. Resolute implementation of the authorities’ program, together with strong international financial support, will be key.

Further fiscal consolidation measures are needed in 2017-18 to keep the program on track. The composition of the fiscal adjustment should be improved over time by increasing non-oil revenue and reducing current expenditure. In addition, reforming the electricity sector and state-owned enterprises will make room for larger and more effective investment expenditure that supports growth and job creation.

Significantly improving public financial management will be important. Arrears need to be assessed and paid following verification, and expenditure commitment and cash management should be strengthened to prevent the accumulation of new arrears.
Measures to bolster financial sector stability include strengthening the legal framework of the Central Bank of Iraq, restructuring state-owned banks, and eliminating an exchange restriction and a multi-currency practice. Measures to prevent money-laundering, counter the financing of terrorism, and strengthen the anti-corruption legislation also need to be implemented.

Implementation of the budget-sharing agreement with the Kurdistan Regional Government would put both the federal government and the Kurdistan Regional Government in a better position to address the shocks to the Iraqi economy.

**********

MilitiaMan:  They must have a rate and chapter VII lifted, or am I missing something for them to get the $840 million? A separate press release will be forthcoming? lol Go figure..
Boxman:  i always wondered what would be the signal that we were at the end...possibly this article may be the signal...so much meaty material..

 Doc.K:  ........WITHIN  30 DAYS  .......
.
.Article 4   Section 2. General exchange arrangements (a) Each member shall notify the Fund, within thirty (30) days after the date of the second amendment of this Agreementof 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

http://www.imf.org/en/News/Articles/2017/08/01/pr17311-imf-executive-board-completes-second-review-of-iraq-sba-and-the-2017-article-iv-consultation?cid=em-COM-123-35710

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.