[SWFloridaGuy] 7-16-2012 WTO: Authorize the Minister of Trade negotiate the files sent to the World Trade Organization on the accession of the Republic of Iraq. Announced the Council of Ministers authorized the Minister of Commerce Chairman of the National Committee to join the World Trade Organization to negotiate the files sent to the World Trade Organization on the accession of the Republic of Iraq.
[SWFloridaGuy] So, the fact that they are negotiating Iraq's accession to the WTO is substantial. Iraq has to have a convertible currency. Membership is considered on an individual, case-specific basis. There are private requirements and stipulations in addition to the basic, general guidelines we see in print. Iraq has to lay out all their economic and trade policies that relate to WTO agreements.
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When Iraq submits this memorandum a panel will consider the application. When the principles and policies are in place, additional negotiations will commence between Iraq and other countries. Once the terms are finalized, they are submitted to the WTO's General Council. If two-thirds of the members vote in favor, than Iraq may accede to the WTO.
So, as you can see, it's not a simple process. To convolute matters, since Iraq's plan is to dedollarize and not continue using the USD as their primary currency, they need to make the IQD a convertible one as accession stipulates.
[SWFloridaGuy] Other than seeing WTO accession as general progress for Iraq, this issue in particular (convertible currency) is something we as Dinarians find may have some applicability.
[winalot] this is HUGE!
[snuggs101] SWFloridaGuy Great News!! Thanks!!!
[sisterbreen] SWFloridaGuy wow
[maranatha] SWFloridaGuy It might also be safe to say that the IQD RV should take place SOME TIME before the WTO accension?
[maranatha] like soon
[jimmydnar] SWFloridaGuy Great Find! Is there a time frame for WTO's decision?
[SWFloridaGuy] jimmydnar They are up for review and negotiating now. This is a great sign for us and one that points to the IQD becoming an internationally tradeable currency.
[SWFloridaGuy] maranatha Yes
[mimi3] SWFloridaGuy SWFloridaGuy I could get excited!
[mimi3] SWFloridaGuy Could Ramadom slow down the progress iyo?
[SWFloridaGuy] mimi3 Just keep an eye on it. No need to get excited until we see our currency convertors move and we're at the bank but that's just my skeptic nature. I let my little penguin dance for me. :penguin:
[SWFloridaGuy] mimi3 I'm not expecting it before Ramadan, so it doesn't slow things down the way I see it. I'm looking Sept-January for movement, which is right around the corner for the people who lay out economic policy 10 years at a time. I also don't pretend to know the date or rate though. It could be sooner, could be later. I don't have a clue.
[stargate] SWFloridaGuy What about IMF article VIII and XIV
[SWFloridaGuy] stargate What about it?
[SWFloridaGuy] Article VIII: General Obligations of Members 1. Introduction 2. Avoidance of restrictions on current payments 3. Avoidance of discriminatory currency practices 4. Convertibility of foreign-held balances 5. Furnishing of information 6. Consultation between members regarding existing international agreements 7. Obligation to collaborate regarding policies on reserve assets
[stargate] Is it or is it not needed to be internationally accepted?
[winalot] stargate it is
[hopeful2&2] shabibi said they would start doing the 1 to 1 in sept, but it had to be internationally trade before they could start
[hopeful2&2] so the way i see it, it goes internatioal, the market begins to drive it up, they trade 1 dollar for 1 dinar which will have the value higher than a dollar
[winalot] hopeful2&2 or.. it opens high.. and floats down
[winalot] driven by us cashing out
[SWFloridaGuy] stargate Well, Iraq is already an IMF member. The IMF and Iraq has their own seperate agreements. Those are general guidelines, then we the actual stipulations and agreements that relate to Iraq. The IMF is more of an advisor and there for instructional purposes and economic reconstruction but yes I believe that is also what the plan is from an IMF standpoint but that's not to say in the mission statement does it say a country is required to "RV." Just to clarify.
[hopeful2&2] so say it comes in at 3.86 or whatever rate it comes in for, then their dinar will be worth that rate to buy products with
[hopeful2&2] winalot yes
[sisterbreen] SWFloridaGuy what is a lop plz
[SWFloridaGuy] sisterbreen A lop is when the current value of your Dinar does not change, the float does. In a currency lop the amount of currency trading on an open market is reduced. Markets are based solely on supply and demand. So, when the amount of currency outstanding is reduced, the price automatically increases without the market value of the tradeable asset increasing. If Iraq were to decide that they have too much currency in the float so they do a 3 zero LOP. This reduces the number of dinar by a factor of 1000 and in so doing, brings the value of the Dinar to 1.17 IQD per 1 USD (or roughly .85 cents per Dinar). The reason for a lop would be to address supply and demand. Although the market price increases as a result, the float decreases and by drying up the float, the value will appreciate more rapidly, so long as the level of buying (proportioned of course by the same % as before) remains the same.
[SWFloridaGuy] But.....FOR many reasons a lop will not happen!!!! Don't worry about it.
[hopeful2&2] SWFloridaGuy they r not trading 1 dinar for 1 dinar, its 1 dollar for 1 dinar
[SWFloridaGuy] hopeful2&2 You're missing the point
[SWFloridaGuy] Nice chatting with you all and GO RV!! :penguin:
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