guardian (3:31 PM): someone "out there" is saying the Article VIII is a rumor, so that got me to do some more checking, I found an article from May 2013 by Shabibi:
4) it is important to point out that there is no restriction on transfers to current payments according to article VIII of the Convention on the International Monetary Fund,
which was one of the first institutional Iraq and one of the first signatories to the Convention on 27/12/1945.
In addition, the free transfers included memoranda of economic and financial policies with the International Monetary Fund held and signed by the Minister of finance and the Governor of the Central Bank.
Read More Link On Right
We wish to clarify that all restrictions were removed after the abolition of the foreign exchange Department of the Central Bank in 2003.
all restrictions were removed after the abolition of the foreign exchange Department of the Central Bank in 2003
all restrictions were removed all restrictions were removed all restrictions were removed all restrictions were removed all restrictions were removed all restrictions were removed all restrictions were removed all restrictions were removed
there you have it!
i think all restrictions were removed
junebug : lol ty did u happen to over look the date of the revalue? lol
guardian: LOL nope sorry wish i had
bruledev: Lemme guess- all restrictions were removed?
guardian: yes that is how i read it
bruledev: Thanks Guardian.
guardian:i know the last imf report says their status is under Article XIV, that i don't understand, because Shabibi said they are not not restricted
i tend to believe "they are not restricted" only because he said they are not and i don't totally understand the ins and outs of Article XIV & VIII
tudor: back....wow guardian, you just may have found something in this older article, makes me go hmmmm.....
sure wish Med wasnt so tied up with other things to get his take on this, but he needs to be doing what he is doing for himself and his family. so I am fine with us guessing for now
med (6:22 PM): Iraq continues to avail itself of the transitional arrangements under Article XIV. Iraq has a generally unrestricted current account regime and a significantly liberalized capital account.
However, four measures (plus one exchange restriction maintained for national or international security) have been identified to give rise to exchange restrictions subject to IMF approval, namely,
(i) the requirement to pay all obligations and debts to the government before proceeds of investments of investors, and salaries and other compensation of non-Iraqi employees may be transferred out of Iraq,
(ii) the requirement to submit a tax certificate and a letter of non-objection stating that the companies do not owe any taxes to the government before non-Iraqi companies may transfer proceeds of current international transactions out of the country,
(iii) the requirement that before non-Iraqis may transfer proceeds in excess of ID 15 million out of Iraq, the banks are required to give due consideration of legal obligations of these persons with respect to official entities, which must be settled before allowing any transfer, and
(iv) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In addition, one exchange restriction maintained for security reasons should be notified to the IMF under the framework of Decision 144-(52/51).
guardian: lol ty med
med: The IMF promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help members in balance of payments difficulties or to assist with poverty reduction.
* balance of payments : The difference between a country's imports and its exports. Balance of trade is the largest component of a country's balance of payments.
Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy.
A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus.
The Articles of Agreement enable the IMF to lend to member countries that have a balance of payments need to provide temporary respite and enable countries to put in place orderly corrective measures and avoid a disorderly adjustment of the external imbalance.
Such lending is usually undertaken in the context of an economic adjustment program implemented by the borrowing country to correct the balance of payments difficulties, which also safeguards IMF resources.
In addition to providing direct financing to its member countries, the IMF plays an important catalytic role in helping member countries to mobilize external financing for their balance of payments needs.
(Iraq has taken advantage of the IMF's help through Stand-By Agreements (SBA) and is currently under one now)
Advantages to Article VIII
28. Correspondingly, the elimination of such exchange measures, often in the context of a member’s acceptance of Article VIII obligations, could bring economic benefits.
The removal of restrictions on payments and transfers for current international transactions could reduce parallel market spreads and facilitate trade. The elimination of MCPs could usher in the unification of official exchange markets and introduce a more market-based pricing of foreign exchange.
Exchange rates may also exhibit more stability as the foreign exchange market deepens and develops with more transactions being conducted in the official market.
The elimination of exchange restrictions could also lead to an increase in the volume of transactions through the banking system, thereby increasing the amount of intermediated funds and providing more accurate information to the authorities about the nature and volume of the flows.
Sections 2, 3, and 4, provides the legal basis for the member countries’ obligations to maintain currency convertibility and exchange regimes free of restrictions or discriminatory practices, and to provide adequate information.
prohibits members from imposing restrictions on the making of payments and transfers for current international transactions without the approvalof the IMF.
The IMF will only approve restrictions if it is satisfied that they are necessary for balance of payments purposes,and that their use will be temporary, and that they are not discriminatory, while the member is seeking to eliminate the need for them.
prohibits members from engaging in any discriminatory currency arrangements or multiple currency practices except as authorized under the Articles of Agreement or approved by the IMF.
Members maintaining such arrangements or practices are expected to consult with the IMF as to their progressive removal, unless they are maintained or imposed under the Article XIV,Section 2.
requires members tomaintain the convertibility of their currency, by buying balances of their currency held by other members when requested by these other members.
Article XIV provides transitional arrangements for countries that have not yet accepted the obligations under Article VIII.
requires members to notify the IMF upon joining whether they intend to avail themselves of the transitional arrangements in Section 2 of this Article, or whether they are prepared to accept the obligations of Article VIII, Sections 2, 3, and 4.
permits members to maintain and adapt to changing circumstances the restrictions on payments and transfers for current international transactions that were in effect on the date on which they became members.
However, members are expected to withdraw restrictions maintained under this Section, and to accept the obligations under Article VIII, Sections 2, 3, and 4, as soon as balance of payments conditions permit.
stipulates that the IMF shall make annual reports on the restrictions in force under Section 2 of this Article. Any member retaining any restrictions inconsistent with Article VIII, Sections 2, 3, and 4 is required to consult annually with the IMF as to their further retention.
that explains both imf article viii and xiv and the differences and what has to be accepted by Iraq to move into viii as in the beginning of the explanation the exchange rate is approved by the imf and the currency will be international
I AM SORRY I HAVE MISSED SO MUCH IT WAS NOT INTENTIONAL I AM MAKING SUPPER NOW IF ANYMORE ? POST THEM FOR ME
ksdunlap: Hi Med .. i'm here, but on the phone
guardian: so without Article VIII no RV still?
med: AND I WILL GET THE ANSWER NOT NECESSARILY GUARDIAN THEY CAN DO WHAT THEY WANT INTERNALLY BUT TO MOVE TO USE IT TO PAY DEBTS INTERNATIONALLY AND AMONGST THE MEMBERS OF THE IMF
guardian: the 1, 2, 3, were met, but 4 i'm not sure about (Jordan)
med: THEY HAVE TO MOVE TO VIII NO THEY HAVE NOT PAID JORDAN IT HAS TO BE PAID I KNOW THAT THE IMF HAS MADE IT CLEAR ON THAT ONE
OK BBIAB I AM LEAVING MY SCREEN OPEN TO CATCH ANY ?
guardian: ok thanks URock!
ksdunlap: cya later Med, thank you
med: YW SO DO YOU AND KSD ALSO LOL