Millionday Roundtable 12/11/13 Part 3 of 3
[millionday] Section 5. Designation of participants to provide currency (a) The Fund shall ensure that a participant will be able to use its special drawing rights by designating participants to provide currency for specified amounts of special drawing rights for the purposes of Sections 2(a) and 4 of this Article.
Designations shall be made in accordance with the following general principles supplemented by such other principles as the Fund may adopt from time to time:
(i) A participant shall be subject to designation if its balance of payments and gross reserve position is sufficiently strong, but this will not preclude the possibility that a participant with a strong reserve position will be designated even though it has a moderate balance of payments deficit.
Participants shall be designated in such manner as will promote over time a balanced distribution of holdings of special drawing rights among them.
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(ii) Participants shall be subject to designation in order to promote reconstitution under Section 6(a) of this Article, to reduce negative balances in holdings of special drawing rights, or to offset the effect of failures to fulfill the expectation in Section 3(a) of this Article.
(iii) In designating participants, the Fund normally shall give priority to those that need to acquire special drawing rights to meet the objectives of designation under (ii) above.
[millionday] (b) In order to promote over time a balanced distribution of holdings of special drawing rights under (a)(i) above, the Fund shall apply the rules for designation in Schedule F or such rules as may be adopted under (c) below.
(c) The rules for designation may be reviewed at any time and new rules shall be adopted if necessary. Unless new rules are adopted, the rules in force at the time of the review shall continue to apply.
[millionday] note ------the next part is about using these funds and then we will read about exchange rates
[millionday] Section 6. Reconstitution
(a) Participants that use their special drawing rights shall reconstitute their holdings of them in accordance with the rules for reconstitution in Schedule G or such rules as may be adopted under (b) below.
(b) The rules for reconstitution may be reviewed at any time and new rules shall be adopted if necessary. Unless new rules are adopted or a decision is made to abrogate rules for reconstitution, the rules in force at the time of review shall continue to apply.
A seventy percent majority of the total voting power shall be required for decisions to adopt, modify, or abrogate the rules for reconstitution.
[millionday] note -- they are talking about the governing group
[millionday] Section 7. Exchange rates (a) Except as otherwise provided in (b) below, the exchange rates for transactions between participants under Section 2(a) and (b) of this Article shall be such that participants using special drawing rights shall receive the same value whatever currencies might be provided and whichever participants provide those currencies, and the Fund shall adopt regulations to give effect to this principle.
[millionday] (b) The Fund, by an eighty-five percent majority of the total voting power, may adopt policies under which in exceptional circumstances the Fund, by a seventy percent majority of the total voting power, may authorize participants entering into transactions under Section 2(b) of this Article to agree on exchange rates other than those applicable under (a) above.
(c) The Fund shall consult a participant on the procedure for determining rates of exchange for its currency. (d) For the purpose of this provision the term participant includes a terminating participant.
millionday] so as we see -- the reality rates need to be set and it appears that they should be set for their position in the IMF etc smile big smile
[brett123] millionday are you saying the imf is going to set the rate for iraq or am i misunderstanding sorry?
[millionday] oh honey i have to say this is great news
[wmawhite] brett123 ....In order for Iraq to have SDRs they need to have a rate reflective of their value..........not the current programed rate.
[brett123] wmawhite so if i understand you sounds like the imf has moved them to 8 to force them to raise the value of their currency to reflect their true value of their country
[millionday] no that is not why
[wmawhite] brett123 .....My understanding is that Iraq proposes a rate.....and the members of the IMF vote to either approve or reject. Also, it is believed that the rate has long since been approved.
[millionday] they have moved to item VIII because that is the progress they have made
[wmawhite] brett123 ...there is NO forcing here.
[millionday] they as progress move from one Item and article as they complete those things that place them there - now the issue is that part of the Item VIII is very beneficial to us and to Iraq as far as that goes
[lorijeanmarshall] Do we how much time they have before they have to set the new rate now that they are under Article VIII
wmawhite] brett123 ....this is a well thought out process.....going from one step to the next..........we are watching as it happens.
[millionday] the IMF has not forced them to any position -- they have been completing so many different things that they are actually making progress lets end the debate and get back to news
[millionday] brb with more
[millionday] Baghdad (news) .. Student member of the committee of economy and investment MP / National Alliance / Hussain Mura'bi, to expedite sending next year's budget to the House of Representatives.
said Mura'bi (of the Agency news): must be accelerated to refer the draft budget for 2014 to the House of Representatives, to be able to approve early not to delay the implementation of projects, calling exceeded stages intersection political between the parliamentary blocs to separate budget development provinces and territories in isolation from the draft general budget
[All4HIM] Okay.. so I missed it please forgive me but.... what is SDR's?
[lorijeanmarshall] All4HIM It will all be in the forum when posted later
[Marco12] Special drawing rights
[millionday] warned: the exploitation of some of the budget discussion for political gain and propaganda, especially as we approach the date for parliamentary elections. was the Minister of Finance Agency Ali Shukri revealed earlier that the 2014 budget next year of 174 trillion dinars and a deficit of up to 27 trillion per day
[millionday] special drawing rights and i will bring an explanation after i get done with the news -- smile
[Domino] millionday I see this like a continuum where they are doing stuff along the way. They have agreed to uphold the conditions of article VIII and are continuing through getting each of them accomplished.
There is no time for that, not date they must be complete by just things the cannot do until other are accomplished. The reality rate will be one of them when they get there and it is required to get to the next thing they want to achieve. Is that about right?
[millionday] i will bring the explanation of the sdr after news -- but this is one of the requirements to be in item VIII or i should say moved to within the imf
[millionday] here we go with this-- The Commission on the economy and investment representative, the importance of opening branches of international banks developed in Iraq to create an atmosphere competitive among local and foreign banks to provide better banking services.
said the decision of the Committee MP / Kurdistan Alliance / Mahma Khalil (of the Agency news): that the Iraqi banking sector still lags behind evolution in global banks, so the introduction of international banks discreet to open branches in Iraq will Paramount broadcast banking culture and identify the most important modern technologies involved
[millionday] in the banking business, which will stimulate the local banks to develop their work. added: It has to be encouraging global banks to open branches in Iraq so as to create an atmosphere competitively compete through local and foreign banks to provide the best banking services using the latest technologies.
pointed out: that the banks' desire discreet and universally known Kalamrakih and English to work in Iraq is evidence that Iraq fertile environment for business investment and possesses a significant economic
[millionday] so as we see -- with the move to item VIII through the IMF and also the huge expansion of the banks within Iraq and outside of Iraq -- we are seeing things happen all at once -- very encouraging brb with more
millionday] here we go parliament -- Finance Committee announced the completion of the quest for the Unified Retirement Law for approval in January, while confirmed that it will work to resolve all disputes and differences over this law.
A member of the Committee MP Haitham al-Jubouri " We hope that we can resolve all disputes and differences over pension law, to be approved in the beginning of the first month of next year, ruling enables the government to send the budget to the parliament soon, because there are many problems between the blocks on them.
[millionday] The student Jubouri other parliamentary committees not to make any statement about the pension law because the Finance Committee is responsible for this file, and any statement outside of this committee is irresponsible.
He was a member of the Commission services and reconstruction parliamentary Ihsan al-Awadi, had confirmed that the Unified Retirement Law will adopt the beginning of February of next year. He stressed that the law will be approved within the current parliamentary session.
[millionday] note -- look at the last line -- the session in now current and we like that lots!!
[millionday] brb with more
[millionday] this is the ministers meeting>>>>>>>>>>>>>>>>>>>>>>>> Authorized the Council of Ministers and the Ministry of Finance to submit the appeal to laws relating to cancel pensions for members of the Governing Council Said a statement issued by the Council, yesterday, that «the Council of Ministers was held, yesterday, held its first session usual in Baghdad, headed by Nouri al-Maliki. said:
«authorized the Council of Ministers and the Ministry of financial authority to provide a challenge to laws and commands listed below in front of the Federal Supreme Court, in coordination with the Legal Department of the General Secretariat of the Council of Ministers on the abolition of pensions for members of the Governing Council dissolved and their deputies and members of the Interim National Council and members of the National Assembly and members of provincial councils, districts and areas all.
[millionday] so this is great -- it seems here we go with business back in order -- now that we like -- it sure is rocking -- wow and everyday -- its great to see brb with more
[millionday] SDRs>>>>>>>>>>>>>>>>>>>>>>>>>>>You can think of SDRs as an artificial currency used by the IMF and defined as a "basket of national currencies". The IMF uses SDRs for internal accounting purposes.
SDRs are allocated by the IMF to its member countries and are backed by the full faith and credit of the member countries' governments.
[millionday] wikipedia................................... Special drawing rights (SDRs) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).
Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged. As they can only be exchanged for euros, Japanese yen, pounds sterling, or US dollars, SDRs may actually represent a potential claim on IMF member countries' nongold foreign exchange reserve assets, which are usually held in those currencies.
While they may appear to have a far more important part to play or, perhaps, an important future role, being the unit of account for the IMF has long been the main function of the SDR
[millionday] Created in 1969 to supplement a shortfall of preferred foreign exchange reserve assets, namely gold and the US dollar, the value of a SDR is defined by a weighted currency basket of four major currencies: the US dollar, the euro, the British pound, and the Japanese yen.
SDRs are denoted with the ISO 4217 currency code XDR. SDRs are allocated to countries by the IMF. Private parties do not hold or use them. As of March 2011, the amount of SDRs in existence is around XDR 238.3 billion, but this figure is expected to rise to XDR 476.8 billion by 2013
[millionday] wow that is a huge jump in its amount expected by the end of this year – goodness i hope that helps you understand a little better SDR
[millionday] so now they have to present their exchange rate to the currencies that make up the sdr and also the exchange rate they are expecting to use for trade and agreements --
[millionday] so as we see -- item VIII is a good thing to say the least -- smile
[millionday] no one knows the time of the rv hun and if they tll you they do they are lying --- the transition stage is what iraq is in now according to this and are to now present them with the exchange rates -- it gives no time limit except that they have to do it
[millionday] i wish they had an exact timeline because then we would know and that would be a great gift -- smile
[millionday] the tariff tax law is for imports and will be applied for taxation of imports from foreign trade - i find it very interesting that they have a timeline set for the tariff though -- it makes me smile
[millionday] it does not have to do with it -- they are two different subjects -- so i will see you at newstime -- 730 est -- goodness it is hard to tell what we will get from it -- Iraq is really getting a lot done ---
[millionday] to be part of the SDR and also in item VIII -- we are certainly seeing lots and i mean lots of progress see you all then
[millionday] yw all the time everyone -- dont miss any news -- it will be very interesting to watch everything right now so be here -- smile