Shredd Chat begins further down after articles
Articles of Agreement of the International Monetary Fund Each sub-point has a hyperlink.
excerpts: Article XIV: Transitional Arrangements
Section 1. Notification to the Fund
Each member shall notify the Fund whether it intends to avail itself of the transitional arrangements in Section 2 of this Article, or whether it is prepared to accept the obligations of Article VIII, Sections 2, 3, and 4. A member availing itself of the transitional arrangements shall notify the Fund as soon thereafter as it is prepared to accept these obligations.
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Section 2. Exchange restrictions
A member that has notified the Fund that it intends to avail itself of transitional arrangements under this provision may, notwithstanding the provisions of any other articles of this Agreement, 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 it became a member.
Members shall, however, have continuous regard in their foreign exchange policies to the purposes of the Fund, and, as soon as conditions permit, they shall take all possible measures to develop such commercial and financial arrangements with other members as will facilitate international payments and the promotion of a stable system of exchange rates.
In particular, members shall withdraw restrictions maintained under this Section as soon as they are satisfied that they will be able, in the absence of such restrictions, to settle their balance of payments in a manner which will not unduly encumber their access to the general resources of the Fund.
Section 3. Action of the Fund relating to restrictions
The Fund 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, or 4 shall consult the Fund annually as to their further retention.
The Fund may, if it deems such action necessary in exceptional circumstances, make representations to any member that conditions are favorable for the withdrawal of any particular restriction, or for the general abandonment of restrictions, inconsistent with the provisions of any other articles of this Agreement.
The member shall be given a suitable time to reply to such representations. If the Fund finds that the member persists in maintaining restrictions which are inconsistent with the purposes of the Fund, the member shall be subject to Article XXVI, Section 2(a).
Article VIII: General Obligations of Members
Section 1. Introduction
In addition to the obligations assumed under other articles of this Agreement, each member undertakes the obligations set out in this Article.
Section 2. Avoidance of restrictions on current payments
(a) Subject to the provisions of Article VII, Section 3(b) and Article XIV, Section 2, no member shall, without the approval of the Fund, impose restrictions on the making of payments and transfers for current international transactions.
(b) Exchange contracts which involve the currency of any member and which are contrary to the exchange control regulations of that member maintained or imposed consistently with this Agreement shall be unenforceable in the territories of any member. In addition, members may, by mutual accord, cooperate in measures for the purpose of making the exchange control regulations of either member more effective, provided that such measures and regulations are consistent with this Agreement.
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.
Section 4. Convertibility of foreign-held balances
(a) Each member shall buy balances of its currency held by another member if the latter, in requesting the purchase, represents:
(i) that the balances to be bought have been recently acquired as a result of current transactions; or
(ii) that their conversion is needed for making payments for current transactions.
The buying member shall have the option to pay either in special drawing rights, subject to Article XIX, Section 4, or in the currency of the member making the request.
(b) The obligation in (a) above shall not apply when:
(i) the convertibility of the balances has been restricted consistently with Section 2 of this Article or Article VI, Section 3;
(ii) the balances have accumulated as a result of transactions effected before the removal by a member of restrictions maintained or imposed under Article XIV, Section 2;
(iii) the balances have been acquired contrary to the exchange regulations of the member which is asked to buy them;
(iv) the currency of the member requesting the purchase has been declared scarce under Article VII, Section 3 (a); or
(v) the member requested to make the purchase is for any reason not entitled to buy currencies of other members from the Fund for its own currency.
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:
(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.
(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.
(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.
Section 6. Consultation between members regarding existing international agreements
Where under this Agreement a member is authorized in the special or temporary circumstances specified in the Agreement to maintain or establish restrictions on exchange transactions, and there are other engagements between members entered into prior to this Agreement which conflict with the application of such restrictions, the parties to such engagements shall consult with one another with a view to making such mutually acceptable adjustments as may be necessary. The provisions of this Article shall be without prejudice to the operation of Article VII, Section 5.
Section 7. Obligation to collaborate regarding policies on reserve assets
Each member undertakes to collaborate with the Fund and with other members in order to ensure that the policies of the member with respect to reserve assets shall be consistent with the objectives of promoting better international surveillance of international liquidity and making the special drawing right the principal reserve asset in the international monetary system.
[Shredd] Articles of Agreement of the International Monetary Fund
[Shredd] ....in case you want to read up on Articles 14 and 8 which come after 7
[DDF] Shredd thanks
[luckyintx] Shredd ty Shredd
[Shredd] sure....been reading the constitution tonight....makes sense what we've been told that after chapter 7, iraq will go into 14 accepting the terms of chapter 8 and if you read it through, you see things like convertability of balances exchange regs, etc interesting stuff, and it will be easily verifiable
[Shredd] once we see chapter 7 lifted ...the three final issues that is so, we got Saleh saying release of new dinar within the next two months, and we see the Finance Committee saying next year's budget won't have the three zeros
Parliamentary Finance: the next budget will be free of zeros
BAGHDAD - World
Parliamentary Finance Committee announced, Tuesday, that the budget for next year 2013 will be the new currency after deleting three zeros from the current currency, arguing that the reluctance of traders and companies from trading in the Iraqi currency behind the adoption of the Central Bank project to delete the zeros.
Said committee member Najia Najib said in an interview for "Alsumaria News" that "the budget next year will see a deal in the new currency after deleting three zeros from the current currency," indicating that "the process of switching the currency and delete the zeros will take nearly two years after the preparations for the process, which began over a year ago ".
The answer that "the Council of Ministers approved during a meeting with the Governor of the Central Bank on the project to delete the zeros and switch Iraqi currency after deciding earlier to wait the project as a result of the high price of the dollar in the local markets over the past months," noting that "the project to delete the zeros and the currency exchange aims to restructuring of the Iraqi currency and a way that is consistent with doing business in Iraq, internally and externally. "
She stressed that "the Finance Committee and the central bank agreed at its last meeting to be next year as the date to start deleting zeros and be balanced in 2013 in the new currency only if there is an obstacle transmitting without it," emphasizing "the need to support the government and parliament of the project to restructure the Iraqi currency."
Naguib considered that "the reluctance of traders and companies for the use of the Iraqi currency and trading may push the central bank to adopt the project to delete the zeros", stressing that "this project would reform the system of currency management and ease of use."
[Shredd] all huge news y'all gives us our "window" imo right?
Shredd] i don't believe the banking and investment conference was a bust the timing was all intentional we've seen articles, many of them... saying investors are starting to realize the huge potential fact oil gold natural gas infrastructure this ball is about to roll folks
Shredd] miraklocura we all know the replacing of the currency is a big project an article today said again, a two year project we saw a similar article like the one you linked earlier this quarter saying the same thing replacing the currency will take time.. to COMPLETE
[miraklocura] Shredd true
[Shredd] but again, what we are looking for is not the completion of this project but what?
[Shredd] the BEGINNING of it when it initiates
[Shredd] that's when the value will increase
[Shredd] right gras yes and how do you give incentive for the peeps to liquidate the remaining dinar against the dollar? Value which will de-dollarize iraq
[grashopa] a rate of 1-1.....or a bit btr
[miraklocura] grashopa that is what i am hoping too
[Shredd] the dollar has been the saving grace we sent 20+ planes of cash over there when this all started so, our eyes need to be on the prize! and that is the beginning of or the initiation of the project to replace the zeros that is huge tick tock sorry, didn't mean to hijack the chat....just wanted to encourage y'all....not that you need it Shredd -- out