Iko Ward: Well the markets are up, Forex polled this morning at 1127, ISX continues to climb out of its hole and back over 900, CBI continues its love affair with Canada at 888.381, Gold staying in bounds, oil up up a buck.
Guess it's another "Where is it Wednesday?"
The ISX news stands out. That's a 2.5% rise in the last two days. Somebody is showing faith in their market…. Be nice if it zooms back to 1000 by Friday.
Iko Ward: For those of you who want another perspective. This TED Talk on who controls the world will be interesting. It also helps explain why we've had such a slow roll out, but not in the way you'd think.. https://www.youtube.com/watch?v=cWVk8Cdvmgs
June1: IKO - Did you read "The New Global Reality Rate!" on recaps this morning? Please pm or tell us what you you think? Do not understand those dates - our RV would happen before those dates -right?!!
Iko Ward: June, I agree with the conclusion but the RV needs to be in place in order for it to change so the date is totally up in the air, both for the RV and the Fiat System. This is one of those pieces of intel that becomes part of the PTB's playing hand. We are just spectators watching the action.
Iko Ward: To clarify, IMO we are right there for this to pop. Any minute.
Red: When we all collectively get too excited the PTB network knocks us down…. when we all collectively get too low they leak some good Intel to us …they have a plan and they are in control Jim ho
PollySue: So did the Iraq bonds go on sale world wide or was it in country only? Iko to me it looks like in country only
Iko Ward: The bonds are like building a race car. First you start the motor on a stand, then pout it in the car and run the car on a dyno, then take to the track fir a few test laps, then run it in a local race, then take it out on the circuit. If it all goes well you get to race at Indy.
PollySue: Iko so with what you said than, it could take a while for Iraq to have it up and running smoothly.
Iko Ward: Polly, yes, it looks sloppy to us westerners but it seems this is how they do everything. It works for them.
Iko Ward: The ISX site is still scrolling all the banners from last week. Maybe that guy thinks it's still too hot to come in to work.*
drdonar :No link since I saw it on the side crawler on bloomberg market makers program, but I am sure article will be out very soon....IMF: Significant work remains for adding yuan to SDR....Proposed delaying decision nine months to September 2016
Backdoc: ISNT THAT INTERESTING. I SAW THE SAME ARTICLE AND THEN IT SAID IN RED THAT THEY WOULD BE CONSIDERED FOR THE SDR IN OCTOBER. MMMMM WHICH IS IT? Lol
JDTolle » August 5th, 2015, What purpose does it serve?
Before you spend your time on anything, before you devote your energy, ask yourself this. What positive purpose will it serve?
Your life is too precious to waste on negativity, on complaining and worrying, on resentment, on anger. Occasionally, those things can spur you to positive action, but most of the time they merely squander your time.
Be intentional about your thoughts, feelings and actions. Select the things that push the world forward, that lift your life, that bring fulfillment and joy.
Jump into those actions that you have a good, positive reason to do. Live your life in a way that resonates with your deepest values.
Stop yourself from reacting out of habit in ways that don’t do anyone any good. Look ahead to the consequences, and enable yourself to choose the best ones.
Every day is brimming with opportunities to live and act in the service of what’s important. Choose in each moment to serve a positive purpose, and transform those opportunities into a rich and rewarding life.
Ralph Marston Wishing All a safe and blessed day JDT
P.S. The best thing about the future is that it comes only one day at a time.
-- Dean Acheson
Walkingstick » August 5th, 2015, 10:25 am BY REQUEST:
International Monetary Fund
REVIEW OF THE METHOD OF THE VALUATION OF THE SDR—INITIAL CONSIDERATIONS
Walkingstick » August 5th, 2015, 10:23 am BY REQUEST:
IMF Work Progresses on 2015 SDR Basket Review
August 4, 2015
SDR review takes place every five years
Staff paper lays out initial considerations; formal Board meeting late 2015
Focus on Chinese renminbi for meeting inclusion criteria
The IMF Executive Board will formally review the composition and valuation of the Special Drawing Rights (SDR) basket toward the end of the year.
As part of this process, the IMF’s Executive Directors recently held an informal meeting to have a first discussion on the review of the valuation of the SDR, an international reserve asset created by the IMF in 1969 to supplement its member countries’ official reserves.
The SDR’s value is currently based on a basket composed of the U.S. dollar, the euro, the pound sterling and the Japanese yen. The IMF reviews the SDR basket valuation method every five years to ensure that it reflects the relative importance of major currencies in the world’s trading and financial systems, with the aim of enhancing the attractiveness of the SDR as a reserve asset.
In an interview, Siddharth Tiwari, Director of the IMF’s Strategy, Policy, and Review Department, discusses the details of the SDR review process.
IMF Survey: The IMF’s Executive Directors just held an informal meeting on the review of the SDR basket. What was the purpose of the meeting?
Tiwari: Every five years, the IMF reviews the status of currencies within the SDR and opens up a window for inclusion of additional currencies. 2015 is a review year. As a first step, the Executive Directors discussed informally a staff paper that laid out initial considerations for the review. The paper provided a status report on the progress made so far and clarified a number of technical issues, such as the applicable legal framework for the review, the scope of the review, operational implications and next steps.
The Executive Board will formally discuss the review toward the end of the year.
IMF Survey: What are the criteria for including a currency in the SDR basket?
Tiwari: The criteria, last updated in 2000, establish that the SDR basket comprises the four currencies that are issued by members or currency unions whose exports of goods and services had the largest value over a five-year period, and have been determined by the Fund to be "freely usable."
The export criterion aims to ensure that currencies that qualify for the basket are those issued by members/currency unions that play a central role in the global economy. The requirement for currencies in the SDR basket to be also freely usable was incorporated in 2000 to reflect the importance of financial transactions in valuing the SDR basket.
The Articles of Agreement define a “freely usable” currency as that which is widely used to make payments for international transactions and is widely traded in the principal exchange markets.
The concept of a freely usable currency concerns the actual international use and trading of currencies, and it is distinct from whether a currency is either freely floating or fully convertible. In other words, a currency can be widely used and widely traded even if it is subject to some capital account restrictions.
On the other hand, a currency that is fully convertible may not be necessarily widely used and widely traded (due to the size and relative importance of that economy in international transactions).
IMF Survey: What will be the main focus of the review?
Tiwari: The Chinese renminbi (RMB) is the only currency not currently in the SDR basket that meets the export criterion. Therefore, a key focus of the current review will be whether the RMB also meets the freely usable criterion in order to be included in the SDR basket.
The staff paper that was discussed by the Executive Directors provides some building blocks to help inform a future decision by the Board. In addition to these issues, the review will also cover the methodology used to determine the currency weights in the SDR basket and a review of the instruments in the SDR interest rate basket.
IMF Survey: Why is staff proposing an extension of the current SDR basket?
Tiwari: To put this in context, the current SDR basket expires at the end of this year. We are proposing extending the current SDR basket by nine months until September 30, 2016. This is in response to feedback from SDR users on the desirability of avoiding changes in the basket at the end of the calendar year and facilitating continued smooth functioning of SDR-related operations. An extension of nine months would also allow users to adjust to a potential changed basket composition should the Executive Board decide to include the RMB.
The proposed extension, which will be decided by the Executive Board later this month, would not in any way prejudge the timing of conclusion or outcome of the review.
IMF Survey: What voting majority is required to include a currency into the basket?
Tiwari: As a general rule, changes to the method of valuation of the SDR basket require a 70 percent majority, while certain types of changes respecting the “principle” of the SDR’s valuation require an 85 percent majority of the total voting power. Historically, decisions that have changed the valuation method have been taken with a 70 percent majority.
IMF Survey: What are the next steps in this review process?
Tiwari: The review is well underway. Further work still needs to be undertaken in a number of areas to help inform the Executive Board’s decision. Staff continues its technical work, including on addressing data gaps and operational issues, while liaising closely with the Chinese authorities and other members ahead of the formal Board meeting expected later in 2015.
Walkingstick » August 5th, 2015, 10:31 am Basra applied customs tariff in the border outlets
Author: Publisher on:August 4, 2015In:
Basra / Center Brief for the Iraqi Media Network (IMN) - border crossings began in Basra province, the application of the customs tariff system on goods entering the country.
And warned Iraqi ports company earlier, the reluctance of traders and suppliers from the use of Iraqi ports if the limited application of the new tariff law on the province of Basra.
The Chairman of the Committee on development and investment in the Basra Governorate Council Aqeel al-Khalidi's (IMN) to maintain obliged to apply the new customs tariff law after the agreement between the federal government and the Kurdistan Regional Government to calculate the new tariff in all outlets the region. "
Khalidi added that "some merchants and suppliers will seek to circumvent the new law through legal loopholes to avoid paying customs tariff," explaining that "the Jordanian goods are exempt from customs duties by some of the gaps, according to the agreement between the two governments."
Administrative adviser to the governor of Basra, al-Hassani certain promised earlier, the new customs tariff law of the jurisdiction of the federal government and local governments regarding the application of this law.