Thread: New Info....for anything here. Taxes, Chit-Chat, Whatever.

Originally Posted by Sudden Impact

If I'm not mistaken it is Saudi and Kuwait that are holding out on 100% forgiveness. If you were a country that had oil as it's primary export and source of income, what sort of deal could Iraq offer you that you would be interested in? Also, I think Saudi and Kuwait have a limited reserve of oil left in their soil. They want the money owed cause they know their supply of oil is limited. Just my take.... most likely incorrect, but from a conspiracy theoriest perspective, I like it!

Not to mention some of those oil fields also reach into Iraq - the last thing they would want is Iraq sucking oil out of the same fields they rely on.

Originally Posted by readytogo

Hey EJAMM, This is very interesting. Can you give some links to this? I noticed "My thoughts" at the end of your post. Is this just your opinion or educated guess? Sure would like to know how you came to this conclusion. Any more insight would be much appreciated.

Discounted oil
Jordan to receive $18 discount on Iraqi oil | Iraq Updates


Par Values (The amended Schedule C)
Articles of Agreement: Schedule C - Par Values

Originally Posted by barmurphy

Hi Ejamm
The IMF will allow a par value change to what? USD 1 TO 1, or the outer lying countries, which would bring it to the $3.00 to $4.00 range.
Thanks, any links would be appreciated.
barmurphy

Don't look for a reversion to a $3 range...at least not for the next 10 years.

Par values according to the IMF would only allow a 4 1/2 percent change from other member countries that have a par value.

Articles of Agreement: Schedule C - Par Values

Some things to note about Par Values:

1. The Fund shall notify members that par values may be established for the purposes of this Agreement, in accordance with Article IV, Sections 1, 3, 4, and 5 and this Schedule, in terms of the special drawing right, or in terms of such other common denominator as is prescribed by the Fund. The common denominator shall not be gold or a currency.

6. A member shall not propose a change in the par value of its currency except to correct, or prevent the emergence of, a fundamental disequilibrium. A change may be made only on the proposal of the member and only after consultation with the Fund.

FDI wil significantly create a disequilibrium for the economy and raise inflation.

Originally Posted by EJAMM

Don't look for a reversion to a $3 range...at least not for the next 10 years.

Par values according to the IMF would only allow a 4 1/2 percent change from other member countries that have a par value.

Articles of Agreement: Schedule C - Par Values

Some things to note about Par Values:

1. The Fund shall notify members that par values may be established for the purposes of this Agreement, in accordance with Article IV, Sections 1, 3, 4, and 5 and this Schedule, in terms of the special drawing right, or in terms of such other common denominator as is prescribed by the Fund. The common denominator shall not be gold or a currency.

6. A member shall not propose a change in the par value of its currency except to correct, or prevent the emergence of, a fundamental disequilibrium. A change may be made only on the proposal of the member and only after consultation with the Fund.

FDI wil significantly create a disequilibrium for the economy and raise inflation.

if you had read the rest of the article they can change the rate par values /7. When a change is proposed, the Fund shall concur in or object to the proposed par value within a reasonable period after receipt of the proposal. The Fund shall concur if it is satisfied that the change is necessary to correct, or prevent the emergence of, a fundamental disequilibrium. The Fund shall not object because of the domestic social or political policies of the member proposing the change. A proposed change in par value shall not take effect for the purposes of this Agreement if the Fund objects to it. If a member changes the par value of its currency de****e the objection of the Fund, the member shall be subject to Article XXVI, Section 2. Maintenance of an unrealistic par value by a member shall be discouraged by the Fund.

8. The par value of a member's currency established under this Agreement shall cease to exist for the purposes of this Agreement if the member informs the Fund that it intends to terminate the par value. The Fund may object to the termination of a par value by a decision taken by an eighty-five percent majority of the total voting power. If a member terminates a par value for its currency de****e the objection of the Fund, the member shall be subject to Article XXVI, Section 2. A par value established under this Agreement shall cease to exist for the purposes of this Agreement if the member terminates the par value de****e the objection of the Fund, or if the Fund finds that the member does not maintain rates for a substantial volume of exchange transactions in accordance with 5 above, provided that the Fund may not make such finding unless it has consulted the member and given it sixty days notice of the Fund's intention to consider whether to make a finding.

9. If the par value of the currency of a member has ceased to exist under 8 above, the member shall consult with the Fund and ensure that its exchange arrangements are consistent with the purposes of the Fund and are adequate to fulfill its obligations under Article IV, Section 1.

10. A member for whose currency the par value has ceased to exist under 8 above may, at any time, propose a new par value for its currency.

11. Notwithstanding 6 above, the Fund, by a seventy percent majority of the total voting power, may make uniform proportionate changes in all par values if the special drawing right is the common denominator and the changes will not affect the value of the special drawing right. The par value of a member's currency shall, however, not be changed under this provision if, within seven days after the Fund's action, the member informs the Fund that it does not wish the par value of its currency to be changed by such action. last i looked iraq value is not in par to other countries!!

Originally Posted by dinarminar

What is the time frame from when those countries that have to approve a par value change (hence, a reversion / RV) and its' actual implementation by the CBI? My concern is how would a lid be kept on this type of incredibly sensitive data to avoid a run on the dinar just prior to them (CBI) pulling the trigger. Unless there is something in place to address this, it is logical that an undetermined number of member country's key players would likely buy billions of dinar if they knew (and apparently, they would) that the CBI has the green light to revalue their currency. The only unknown factor is when or in Iraq's case IF the CBI would execute the strategy. To me, this could be viewed like inside trader information in stocks but to a potentially much higher and more lucrative windfall. What piece am I missing here?

The CBI would have to initiate a Letter of Intent to the IMF requesting the change. The IMF must respond in a reasonable amount of time.

Articles of Agreement: Schedule C - Par Values

2. A member that intends to establish a par value for its currency shall propose a par value to the Fund within a reasonable time after notice is given under 1 above.

7. When a change is proposed, the Fund shall concur in or object to the proposed par value within a reasonable period after receipt of the proposal. The Fund shall concur if it is satisfied that the change is necessary to correct, or prevent the emergence of, a fundamental disequilibrium. The Fund shall not object because of the domestic social or political policies of the member proposing the change. A proposed change in par value shall not take effect for the purposes of this Agreement if the Fund objects to it. If a member changes the par value of its currency de****e the objection of the Fund, the member shall be subject to Article XXVI, Section 2. Maintenance of an unrealistic par value by a member shall be discouraged by the Fund.

Keep in mind Letters of Intent have a 30 day shelf life (sorry I can no longer find the link). If the request by the member country was approved by the IMF but not implemented within 30 days the request must be re-submitted.

Also keep in mind that the IMF holds New Iraqi Dinar as well.
Articles of Agreement: Article VII: Replenishment and Scarce Currencies

According to the IMF they are holding 1.314.41 SDR Million in currency...or 110.60% of its quota.

Originally Posted by EJAMM

The CBI would have to initiate a Letter of Intent to the IMF requesting the change. The IMF must respond in a reasonable amount of time.

Articles of Agreement: Schedule C - Par Values

2. A member that intends to establish a par value for its currency shall propose a par value to the Fund within a reasonable time after notice is given under 1 above.

7. When a change is proposed, the Fund shall concur in or object to the proposed par value within a reasonable period after receipt of the proposal. The Fund shall concur if it is satisfied that the change is necessary to correct, or prevent the emergence of, a fundamental disequilibrium. The Fund shall not object because of the domestic social or political policies of the member proposing the change. A proposed change in par value shall not take effect for the purposes of this Agreement if the Fund objects to it. If a member changes the par value of its currency de****e the objection of the Fund, the member shall be subject to Article XXVI, Section 2. Maintenance of an unrealistic par value by a member shall be discouraged by the Fund.

Keep in mind Letters of Intent have a 30 day shelf life (sorry I can no longer find the link). If the request by the member country was approved by the IMF but not implemented within 30 days the request must be re-submitted.

Also keep in mind that the IMF holds New Iraqi Dinar as well.
Articles of Agreement: Article VII: Replenishment and Scarce Currencies

According to the IMF they are holding 1.314.41 SDR Million in currency...or 110.60% of its quota.

They don't have to have a par value! Do they have a Par Value now? They can revert to the deJure value of $3.22 whenever they want.

Originally Posted by duck2000

if you had read the rest of the article they can change the rate par values /7. When a change is proposed, the Fund shall concur in or object to the proposed par value within a reasonable period after receipt of the proposal. The Fund shall concur if it is satisfied that the change is necessary to correct, or prevent the emergence of, a fundamental disequilibrium. The Fund shall not object because of the domestic social or political policies of the member proposing the change. A proposed change in par value shall not take effect for the purposes of this Agreement if the Fund objects to it. If a member changes the par value of its currency de****e the objection of the Fund, the member shall be subject to Article XXVI, Section 2. Maintenance of an unrealistic par value by a member shall be discouraged by the Fund.

8. The par value of a member's currency established under this Agreement shall cease to exist for the purposes of this Agreement if the member informs the Fund that it intends to terminate the par value. The Fund may object to the termination of a par value by a decision taken by an eighty-five percent majority of the total voting power. If a member terminates a par value for its currency de****e the objection of the Fund, the member shall be subject to Article XXVI, Section 2. A par value established under this Agreement shall cease to exist for the purposes of this Agreement if the member terminates the par value de****e the objection of the Fund, or if the Fund finds that the member does not maintain rates for a substantial volume of exchange transactions in accordance with 5 above, provided that the Fund may not make such finding unless it has consulted the member and given it sixty days notice of the Fund's intention to consider whether to make a finding.

9. If the par value of the currency of a member has ceased to exist under 8 above, the member shall consult with the Fund and ensure that its exchange arrangements are consistent with the purposes of the Fund and are adequate to fulfill its obligations under Article IV, Section 1.

10. A member for whose currency the par value has ceased to exist under 8 above may, at any time, propose a new par value for its currency.

11. Notwithstanding 6 above, the Fund, by a seventy percent majority of the total voting power, may make uniform proportionate changes in all par values if the special drawing right is the common denominator and the changes will not affect the value of the special drawing right. The par value of a member's currency shall, however, not be changed under this provision if, within seven days after the Fund's action, the member informs the Fund that it does not wish the par value of its currency to be changed by such action. last i looked iraq value is not in par to other countries!!

I did read the rest and your point is?

The other countries within its territories...Kuwait has a $3+ exchange rate but also has a balance of payment surplus...Iraq has to go on "credit" based off of assumed debt relief and the ICI donor assistance.

Par values are not the only issue in play.

correct we know that a letter if intent was sent hence a r/v!!!!

Originally Posted by Bubba Dinar

They don't have to have a par value! Do they have a Par Value now? They can revert to the deJure value of $3.22 whenever they want.

They cannot revert to $3.22 and I am not sure why anyone would think that. In order for Iraq to maintain a proper economy without collapsing it would need to sustain a positive balance of payments. Even if Iraq reduced its debt to zero they still could not support a $3 exchange rate.

Originally Posted by EJAMM

They cannot revert to $3.22 and I am not sure why anyone would think that. In order for Iraq to maintain a proper economy without collapsing it would need to sustain a positive balance of payments. Even if Iraq reduced its debt to zero they still could not support a $3 exchange rate.

they have the oil the gas and the gold reserves and the backing by the us and the imf hence r/v!! what more do you need!iraq was having a large rate before withn a large debt didnt seem to affect them before!