Post From Dinar Updates 3-02-16
Chat Room Excerpts & Highlights
Dinar Updates Wednesday Chat 3-02-16 Part 1 of 3
“Horse sense is the thing a horse has that keeps it from betting on people.”
rcookie says to magnetlady():US SPECIAL FORCES CAPTURE 1ST ISIS LEADER IN FIELD.....
rcookie says():ABADI READY TO SHOW TECHNOCRATIC CABINET APPOINTEES....
rcookie says to larrykn():WAS EVERYONE TALKING ABOUT ABADIS NEW BLOC AND TURNING AGAINST MALIKI LAST NIGHT...
larrykn says():sorry rcookie I'm moving today so wasn't around that much yesterday
rcookie says():OK TY LARRY..
magnetlady says):rcookie, I don't remember a lot being said about it.
magnetlady says():But I was in and out. MD was not in, but is supposed to be tonight.
larrykn says():I did read that tho, sounds like Abadi will have it his way real soon that is good for us
rcookie says():GREAT NEWS THIS MORNING....BASRA STARTING TO TAKE THEIR 50% SHARE OF PORT REVENUES AS PER BUDGET AND CUSTOMS TARIFF APPLICATION....
Horsegal says(:Woohoo Rcookie!
rcookie says):SHOWS CUSTOMS PROGRAM WORKING...BUDGET EXECUTING AND TRANSFER OF POWER TO PROVINCE........THAT IS WHOOOPOW WORTHY!!!!
magnetlady says():Wow rcookie, "as per budget" like the sounds of that
larrykn says():rcookie that is great news they are moving forward :)
rcookie says():AGAIN...HUGE...HUGE...HUGE PROGRESS...NEVER HAPPENED BEFORE...EVER...
rcookie says to dale():WHAT IS THAT...
jeffjane says to rcookie():Do you think Iraq will wait with rate change until Abadi has the cabinet seated and settled?
jeffjane says to rcookie():Or can it go without that
dale says():Rcookie : Cool
rcookie says to dale():I THINK THAT THE NEW CABINET WILL BRING CLOSURE TO AMNESTY VOTE AND MOVING FORWARD...
dale says():Rcookie : Funky smile from this tablet. That is great.
rcookie says to dale():I DONT THINK CABINET REFORMS IMPEDE MONETARY VALUE CHANGE PROGRESS...
rcookie says():I KNOW ITS EARLY BUT...
rcookie says():HEY GM CLAY!!
magnetlady says():sorry rcookie, was off reading something.
magnetlady says():BUT ... what?
magnetlady says():I think all this is fabulous informtion, Thanks for being our early morning news hound bringing in all this to us.
rcookie says():THERE WAS A LOT OF TALK YESTERDAY ABOUT IRAQ PURSUIT OF ARTICLE 8 AND WTO ACCESSION AS BENCHMARKS TOWARD IQD VALUE CHANGE....
rcookie says to magnetlady():YVW MAGS...
magnetlady says():Yes I saw some of that too. Lots of people last night asking about article 8
dale says():Rcookie : That is a question I had that I was going to ask so I like that too .... as a matter of fact wonderful !
clay says to rcookie():any timeline on art 8 and WTO
clay says to rcookie():besides before June
clay says to rcookie():appreciate all you bring
rcookie says():GOING TO SHOW SOME HISTORY OF IRAQ & ARTICLE 8...THE OBLIGATIONS...AND PITFALLS TO AVOID...
rcookie says():THIS IS AN IMF PRESS RELEASE FROM 2013 THAT OUTLINES A BREACH OF OBLIGATIONS UNDER ARTICLE VIII...AND IT DEALS WITH SECTION 5
rcookie says():IMF Executive Board Reviews Noncomplying Purchase by Iraq and Breach of Obligations Under Article VIII, Section 5 Press Release No. 13/464 November 21, 2013
The Executive Board of the International Monetary Fund (IMF) has reviewed a noncomplying disbursement by Iraq totaling SDR 297.1 million (about $453.7 million) that was made on March 22, 2011, following the completion of the second review under the 2010 Stand-By Arrangement (SBA) (see Press Release 11/90), and a breach of obligations under Article VIII, Section 5 of the IMF’s Articles of Agreement.
The SBA was approved in February 2010 for a total amount of SDR 2.38 billion (about $3.63 billion) to cover Iraq’s balance of payments needs (see Press Release 10/60). Iraq received disbursements amounting to the equivalent of SDR 1,069.56 million (about $1.63 billion). The SBA expired in February 2013.
rcookie says():SO KEEP IN MIND THAT THIS IS FROM 2011 AND THEY WERE AT THE 2ND REVIEW UNDER THEIR SBA WHEN THIS BREACH OCCURED....
rcookie says():As the authorities have taken appropriate corrective measures since the purchase in March 2011, the Executive Board granted a waiver for the nonobservance of one continuous performance criterion (PC) and determined that no further remedial action is required in connection with its obligation to provide information under Article VIII, Section 5.
rcookie says):SO THE IMF EXECUTIVE BOARD GRANTED A NON COMPLIANCE WAIVER...AND CONCLUDED NO FURTHER REMEDIAL ACTION WAS NECESSARY....
rcookie says():The noncompliant disbursement arose as a result of misreporting on the observance of the standard continuous PC for the nonimposition or intensification of restrictions on the making of payments and transfers for current international transactions.
In October 2012, staff learned that during the last quarter of 2010 the Central Bank of Iraq (CBI) issued three circulars on the daily foreign exchange auctions that gave rise to exchange restrictions subject to IMF jurisdiction.
The circulars: (a) introduced maximum limits on the availability of foreign currency cash for individuals, (b) introduced limits on the availability of foreign currency cash through the CBI foreign exchange auctions to money transfer companies and exchange bureaus, and (c) introduced and (d) later intensified a requirement to present a tax clearance certificate for firms to transfer funds in excess of certain amounts purchased through the CBI auctions.
rcookie says():HMMMMM ANYONE TAKE A GUESS WHY THEY WERE SLOW AND RESISTANT TO REPORTING ON AUCTION ACTIVITIES AND ACCOUNTABILITY....BIG SHOCKER RIGHT.....
clay says to rcookie():corruption?
rcookie says():SO MISREPORTING OR REPORTING ALTOGETHER......
clay says to rcookie():lol
rcookie says():The restriction on the availability of foreign currency cash for individuals was temporary, as the CBI repealed it in August 2011. The authorities have taken appropriate corrective action by removing the remaining restrictions in the course of 2013. On this basis, the Executive Board granted a waiver for the nonobservance of the PC.
larrykn says():mmm you think that is why there are over 4000 cases of corruption going on
clay says to rcookie():(y)
rcookie says):THESE ARE THE RESTRICTIONS THEY REFER TO IN THE IMF LOI/MEFP/YECH MOU.......
clay says to rcookie():will this hold it all up till its taken care of
clay says to rcookie():IYO
rcookie says():NO...THESE ARE THINGS THEY WENT THROUGH IN 2011 THAT WERE IDENTIFIED AND ADDRESSED...HOWEVER ARE PART OF THE ARTICLE 8 OBLIGATIONS AND PROCESS....
rcookie says():THEY REMOVED THE REMAININ RESTRICTIONS IN 2013^^^^
clay says to rcookie():thanks
larrykn says():I don't think there is a holdup unless the changing of the cabnet as something to do with it
rcookie says():The Executive Board also found that the inaccurate reporting on the observance of the PC also gave rise to Iraq’s breach of its obligations under Article VIII, Section 5, of the IMF’s Articles of Agreement, which requires member countries to furnish such information as the Fund deems necessary for its activities, including information that is necessary to assess observance of PCs.
The CBI introduced the necessary changes in its procedures in order to share circulars with the IMF in a timely manner and regularly publish the circulars on the CBI website. In view of the commitment by Iraq to provide timely and accurate data to the IMF on the exchange system in the future, the Executive Board decided not to require any further remedial action in connection with the breach of obligations under Article VIII, Section 5.
rcookie says():SO THEY WERE FOUND IN VIOLATION...SPANKED AND CORRECTED...
rcookie says():HERE IS THE LINK TO THAT IMF PRESS RELEASE...
rcookie says():OK...THIS IS ARTICLE VIII SECTION 5 THAT THEY WERE IN BREACH OF....
rcookie says():Section 5. Furnishing of information
(a) The Fund may require members to furnish it with such information as it deems necessary for its activities, including, as the minimum necessary for the effective discharge of the Fund’s duties, national data on the following matters:
rcookie says():(i) official holdings at home and abroad of (1) gold, (2) foreign exchange;
(ii) holdings at home and abroad by banking and financial agencies, other than official agencies, of (1) gold, (2) foreign exchange;
(iii) production of gold;
(iv) gold exports and imports according to countries of destination and origin;
v) total exports and imports of merchandise, in terms of local currency values, according to countries of destination and origin;
(vi) international balance of payments, including (1) trade in goods and services, (2) gold transactions, (3) known capital transactions, and (4) other items;
(vii) international investment position, i.e., investments within the territories of the member owned abroad and investments abroad owned by persons in its territories so far as it is possible to furnish this information;
(viii) national income;
ix) price indices, i.e., indices of commodity prices in wholesale and retail markets and of export and import prices;
(x) buying and selling rates for foreign currencies;
(xi) exchange controls, i.e., a comprehensive statement of exchange controls in effect at the time of assuming membership in the Fund and details of subsequent changes as they occur; and
(xii) where official clearing arrangements exist, details of amounts awaiting clearance in respect of commercial and financial transactions, and of the length of time during which such arrears have been outstanding.
rcookie says():(b) In requesting information the Fund shall take into consideration the varying ability of members to furnish the data requested. Members shall be under no obligation to furnish information in such detail that the affairs of individuals or corporations are disclosed.
Members undertake, however, to furnish the desired information in as detailed and accurate a manner as is practicable and, so far as possible, to avoid mere estimates.
rcookie says():(c) The Fund may arrange to obtain further information by agreement with members. It shall act as a centre for the collection and exchange of information on monetary and financial problems, thus facilitating the preparation of studies designed to assist members in developing policies which further the purposes of the Fund.
rcookie says():SO THAT IS SECTION 5 OF ARTICLE VIII'S 7 ARTICLES...AND THE ONE THAT IRAQ WAS IN BREACH OF IN 2011....
rcookie says():THE OTHER ARTICLE THAT EXPERTS SAY IS TO BE CHALLENGING IN MAINTAINING COMPLIANCE ON...ESPECIALLY IN TODAYS ENVIRONMENT IS ARTICLE 3....
rcookie says():CORRECTION....SECTION 3 OF ARTICLE VIII...
clay says to rcookie():so has this been totally resolved
clay says to rcookie():so they can move into art 8
rcookie says():Section 3. Avoidance of discriminatory currency practices
No member shall engage in, or permit any of its fiscal agencies referred to in Article V, Section 1 to engage in, any discriminatory currency arrangements or multiple currency practices, whether within or outside margins under Article IV or prescribed by or under Schedule C, except as authorized under this Agreement or approved by the Fund.
If such arrangements and practices are engaged in at the date when this Agreement enters into force, the member concerned shall consult with the Fund as to their progressive removal unless they are maintained or imposed under Article XIV, Section 2, in which case the provisions of Section 3 of that Article shall apply.
rcookie says to clay():YES...
rcookie says to clay():HERE IS THE LINK FOR ARTICLE VIII OBLIGATIONS FROM IMF...
Article VIII: General Obligations of Members
Comments may be made at the end of Part 3 Thank You Part 2