DINAR UPDATES 4-7-16
Post From Dinar Updates
Chat Room Excerpts & Highlights
Dinar Updates Thursday AM Chat 4-7-16 Part 3 of 3
_firefly_ says():The drop in oil prices over the past two years has battered Baghdad's finances as it wages a battle against Islamic State militants in the north and west and confronts a political crisis that threatens to bring down the government.
Iraq, which relies on oil for more than 90 percent of its revenue and sells at a discount to global benchmark crudes, earned an average of $24 a barrel in the first two months of the year and $28 in March, the Iraqi official said late on Wednesday. "We have to rebuild the budget taking this into consideration."
The revised budget, which has not been finalised, is part of Iraq's negotiations for a standby agreement (SBA) with the IMF, the official added. The SBA financing could be approved as early as June, unlocking $15 billion in international assistance over the next three years.
"If an SBA is reached, part of that financing gap will be met by IMF and other donor financing, but it will not close the entire gap," Nasaa said.
"A number of measures are going to have to come from the government itself to increase revenues and bring expenditure in line with the new revenue reality. It has to be a combination of both."
The Iraqi official declined to specify what measures Baghdad would take to reduce the deficit, but said: "It is a must, otherwise we will have to borrow more and more." – Reuters
_firefly_ says():The revised budget, which has not been finalised, is part of Iraq's negotiations for a standby agreement (SBA) with the IMF, the official added.
_firefly_ says():The SBA financing could be approved as early as June
_firefly_ says():The SBA financing could be approved as early as June
tman23 says():Good Bank decided to cancel the paragraph concerning the fulfilment of Commission 1% owners of smart card ports approved by the Board of Directors in an earlier resolution.
He said Chairman and Managing Director Mohamed Abdel Wahab in a statement received that "the Board decided to raise daily withdrawals for holders of ports to 400 million Iraqi dinars and not more than 8 draws daily, adding that" these actions come in order to provide the best banking services to beneficiaries.
He denied as discussed in an earlier news media that the Commission imposed on retirees from the Cardmember to card saying he had nothing of that card holder so deductible.
_firefly_ says():Interesting timing according to the IMF statement of Iraq joining the Global Markets by the 1st half of 2016 !!!!!!!!!
Baxter says():Looks like we will be waiting till the end... just like always.. Oh well...... 84 more days till July 1
_firefly_ says to larrykn():So what does this tell you?
larrykn says to _firefly_():I believe we are right on track
_firefly_ says to larrykn():Read the PDF again :)
TUJ says to _firefly_(): GM I certainly like the very first statement in the pdf 1. The Fund’s legal framework provides the basis to actively promote the liberalization of member countries’ current accounts. The Articles of Agreement set out legal obligations which effectively promote the free convertibility of members’ currencies for payments and transfers for current international transactions.
TUJ says to _firefly_():What more is there to really say lol
_firefly_ says to larrykn(11:26 AM):3 Article XIV for over 40 years. In addition, some members impose exchange restrictions or multiple currency practices (MCPs) without Fund approval. A concerted staff effort is needed to press for the removal of unapproved exchange restrictions and MCP’s and to ensure that new changes to members’ exchange control regimes are consistent with Article VIII obligations and macroeconomic considerations.
Moreover, growing demand for technical assistance in the foreign exchange area provides opportunities for expanding the Fund’s involvement in streamlining members’ exchange control regimes. There is also significant scope to improve the compilation of information on members’ exchange systems and to further the understanding of the economic implications of existing exchange restrictions and MCPs.
6. This paper reports on the work undertaken in this area since the 1992 review and seeks to encourage further progress incurrent account liberalization among the membership.
Section II providesan overview of the legal framework; Section III studies recent trends in members’ acceptance of Article VIII obligations, and analyzes the factors underlying these trends; Section IV outlines the possible economic (and financial) benefits of current account liberalization for Fund members; finally, Section V lays out the implications for surveillance, the enforcement of compliance with Article VIII obligations and technical assistance.
II. LEGAL FRAMEWORK
7. A key purpose of the Fund is to “assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the
_firefly_ says to larrykn():services, interest, and income) and a few items that, from an economic perspective, are capital in nature (e.g., payments of moderate amount for amortization of loans or for depreciation of direct investments).
_firefly_ says to larrykn():(e.g., payments of moderate amount for amortization of loans or for depreciation of direct investments).
_firefly_ says():Article VIII baby !
larrykn says():yes it is isn't it
_firefly_ says():This PDF file from the IMF explains article VIII obligations
larrykn says():we know they are about to get all these loans from the imf and wb, now why would the IMF or wb loan money if they didn't know for sure they could pay it back , mmmm
larrykn says():the IMF LOI shows the way, this article shows the obligations
_firefly_ says():Understanding that PDF file should make you folks jump up and down ... especially how it ties in with current events
larrykn says to _firefly_():I've been jumping up and down for a week now :D
_firefly_ says to larrykn():(y)(y)(y)
_firefly_ says to larrykn():Why is the loans starting in June ????????
larrykn says():Folks if this don't get you going you better check your pulse lol
Martha Sue says to _firefly_():thank you ... I've opened it and will come back and read. LOVE THE EXCITEMENT IN YOUR WORDS this morning. Praying we are there!!! NOW!!! Thank you for all you do!
_firefly_ says to Martha Sue():VW hon :)
Martha Sue says to larrykn():hey buddy ... gotta go to another office ... sooooooooo scream really loud if Firefly finds the RV and Article VIII DONE!!! WAHOOOOZERS! :D:D:D
larrykn says to Martha Sue():well do :)
_firefly_ says to Martha Sue():The IMF stated Iraq will enter the global markets by the 1st half of 2016 !!!!!
_firefly_ says to Martha Sue():And the loans begin in june?
Martha Sue says to _firefly_():so before June??????????? ... how about April ... that's in the 1st half. I vote for this month!
_firefly_ says to Martha Sue():I don't do dates but I'm VERY excited by FACTS !!!!!
Martha Sue says to _firefly_():How about if we all take a vote? That might do us as much good as our vote for President here!
Martha Sue says to _firefly_():I see you are very excited ... FOR THAT ... I'M EXCITED TOOOOOOOOOOO!
woodguy says():CAn't be much more factural!
woodguy says():BINGO BUDDY!
woodguy says():and what do they need to be article vIII compliant?
Martha Sue says to _firefly_():Like Hutch said yesterday ... a bank is a place that will loan you money if you can afford to pay it back (WHEN YOU DON'T NEED IT) ... soooooo that said ...
TODAY prior to Iraq being in a position to pay back billions of loan money ... they are preparing to loan them money. DUH ... that makes total sense that they KNOW that a change is coming and that the ability to repay the loan will be there! COME ON RV!
puffdragon says():My thoughts are for the IMF and WB to say the loans to start as early as june, they see a change in the ability for Iraq to repay the loans, hence our dreams will be a reality JMO !