Don961: Global Monetary System Needs Reforming, Says Trichet
May 10, 2016, 05:55:00 AM EDT By Dow Jones Business News
FRANKFURT—Jean-Claude Trichet, former head of the European Central Bank, has called for the reform of the international monetary system, with more guidance on appropriate exchange rates, highlighting concerns policy makers have about fluctuations in exchange rates.
In an interview with German financial newspaper Boersen-Zeitung, Mr. Trichet said that he saw "good reasons" to reassess the international monetary system. "We are at a turning point," he said, noting the addition of the Chinese renminbi into the basket of Special Drawing Rights currencies. The SDR is an international reserve asset, created by the International Monetary Fund.
But he said that "the perception of tolerable exchange rate fluctuations has somewhat changed, after the crisis, in the advanced economies. We have to draw lessons from that."
He said that a "return to a Bretton Woods type system with fixed exchange rates wouldn't be appropriate and strict exchange rate ranges would permanently invite speculators to test the limits."
"But to display the medium term equilibrium cross rates between major floating currencies as seen by interested parties, with the stamp of the IMF, could help stabilizing the whole system."
International officials have repeatedly stressed the need to avoid "competitive devaluations," where a country makes its currency cheaper, but in turn hurts other countries' economies by causing their currencies to rise in value. Policy makers worry that such moves would quickly turn into a "currency war."
Read more: http://www.nasdaq.com/article/global-monetary-system-needs-reforming-says-trichet-20160510-00127#ixzz48I7ZgY00
Frank26 Video 5-10-16
7-fa: OK MAYBE I GOT IT MAYBE NOT OLD GOVERNMENT OUT NEW IN. OLD MONEY OUT NEW IN WITH VALUE. MAYBE IM ON RIGHT TRACK???
Don961: looks like a shriveled up and dead , stagnant GOI ..... being replaced by a much larger ,stronger more vital Iraq ... ready to make a huge splash in the rest of the world .....
Meathead: Coconut, coconut, coconut... I remember a coconut in the USA about a month ago. Can someone not my memory on WHO the coconut was or WHAT it meant? Thanks in advance!
Don961: Remember posting an article with the term coconut in it .... as it came out in the translation ... referred to an important official .... possibly an IMF official ....who was hardly a coconut ....
We all know who the largest coconut on the tree is ....
Islandg1211: I was the one that posted last month on who "Coconut" is. He works under Christine LaGuarde. He reviewed Iraq's SMP. His name is Christian Josz. Here's the article:
IMF Staff Completes Mission for a Staff-Monitored Program Review and a Stand-By Arrangement Discussion with Iraq
Press Release No. 16/142
March 29, 2016
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
An International Monetary Fund (IMF) mission led by Christian Josz visited Amman from March 17-29, 2016 to review the Staff-Monitored Program (SMP) and begin discussions on a Stand-By Arrangement (SBA) with the Iraqi authorities.
At the end of the visit, Mr. Josz issued the following statement:
“Iraq continues to face a number of challenges. Key among those is the ongoing armed conflict with ISIS, which continues to strain the country’s resources and results in new waves of internally displaced people, now reaching over 4 million. The other key challenge is the steep fall in oil prices, causing a large external shock to the balance of payments and budget revenue, which depend predominantly on oil export receipts.
“Real GDP contracted by 2.1 percent in 2015 owing to the conflict, destruction of infrastructure and assets, disruptions in trade, and deterioration of investor confidence. The increase in oil production, which is located in areas under control of the Iraqi government and the Kurdistan Regional Government, helped to mitigate the economic deterioration in the non-oil sector.
The current account deficit of the balance of payment widened to 5.1 percent of GDP in 2015. As a result, foreign exchange reserves dropped by $13 billion to $54 billion at end-2015.
“Preliminary estimates indicate that the authorities continue to make progress under the SMP. Three out of the five indicative targets at end-December 2015 were met, owing to the under execution of expenditure on wages and pensions, goods and services, and transfers. The target on social spending was missed by a small margin.
The target on non-accumulation of external arrears was missed due to the government’s cash constraint. One out of three structural benchmarks was met and the other two were not yet met but good progress has been made and authorities expect to meet them shortly.
“The Iraqi authorities and IMF staff have made good progress towards reaching an understanding on a program of economic and financial policies that could be supported by financing.
This program would include further fiscal consolidation to bring spending into line with the lower level of oil prices and maintain debt sustainability. It would also include measures to protect the poor and public financial management reforms to strengthen fiscal transparency, improve the quality of public spending, and enhance financial sector stability. The discussions will continue during the April 2016 IMF-World Bank Spring meetings in Washington, D.C.
“During the mission the team met with the Minister of Finance Hoshyar Zebari, Acting Governor of the Central Bank of Iraq (CBI), Ali Allaq, the Financial Adviser to the Prime Minister Mudher Saleh, and officials from the ministries of finance, oil, planning, electricity, the CBI, and representatives from state-owned banks and the Iraq Business Council. The team would like to thank the Iraqi authorities for their cooperation and the open and productive discussions.”
IMF COMMUNICATIONS DEPARTMENT
Don961: Yes you did Island ... I remember .. thanks .... the end of March program review
Frank26: Would You like my interpretation? OK? ......... LOL :
The GOI had thorns ............. 2 major ones.
But the fruit will be sweeter.
A removes many to Replace with 5.
With better and bigger stuff.
IMO with IMF ............... Scored on the 28th of last. KTFA Frank
Meathead: That's EXACTLY what I was thinking Frank! Thanks for sharing. I love the way you teach us! So do you agree with Delta's comments regarding the 30 days to get things done from the 28th of April? Yes
Frank26: Yes ............... IOO .......... Our TEAMS all agree on this. KTFA Frank