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Wednesday, August 8, 2018

IRAQ & ARTICLE VIII, 8 AUGUST

Are we looking for Iraq to submit an Article VIII request to the IMF, and does Iraq need to have an Article IV Consultation before we can expect to see an RI/RV?

I was just wondering if these items would tip us off that our quest was getting close.
There is an Article IV consultation coming up in September with the IMF and my gut feeling is that they are stalling these election results until that time period, why? 
Maybe the consultation is the answer? But it seems very plausible. 


The IMF is monitoring the Multiple Currency Practices (MCP) closely and for the first time since 2012 Iraq has met their obligations under the MCP of Article VIII.
This qualifies them technically to move to Article VIII.
But remember moving to Article VIII does not happen overnight.
Iraq has been moving in this direction for years now. 


First you have to meet all the responsibilities as a member nation under Article VIII of the UN Charter as a member nation.
Then they elevate you to operate with all the privileges under this section of the UN Charter. 


The loans we see Iraq now being granted under the SBA is part of these SDR privileges. 


So why are they not fully in Article VIII already? 


There is no magic to it and no trigger.
No one is going to stand on a stage and hand Iraq a certificate for graduating to Article VIII. 


We must watch how they perform and opening the ISX up to a global trading platform on Aug 1st was a very good sign moving forward in this direction.

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