Politics Won't Stop Deletion of Zeros After Coming Out of Chapter 7

[SocalDinar]

 

I also find this sentence interesting:

 

He pointed out that "the seventh item that came out of him Iraq was a bigger obstacles implementation of the project, to the possibility of a claim مدخري currency abroad damages, but after the end of this obstacle has become necessary to start deleting the zeros", 

 

I think they are talking about possible lawsuits Rayzur

 

Iraq would emerge from Chapter VII puts new challenges

Money will become vulnerable to lawsuits after it was protected

 

Baghdad: Al-Sharq al-Awsat

put out of Chapter VII Iraq before the new challenges and responsibilities, most notably the protection of his assets abroad of lawsuits, especially those affected by the regime of Saddam Hussein's invasion of Kuwait in 1990.

Says Dr. Amer Hassan Fayad, Dean of the Faculty of Political Science, University of Baghdad, told «Middle East» on Chapter VII of the Charter of the United Nations, said that «Iraq would emerge from under pain of this item means the withdrawal of Iraq from the Department of restrictions to the circle of freedoms, where Iraq another break under political and under Mali was handcuffed to him.

Fayyad added that «Iraq under that became incomplete sovereignty and The decision independently, and will be treated as a fully recognized by the international community politically. He explained that «the financial side of the checkout process of this chapter is that the largest financial wealth an Iraqi oil sent so far to the Development Fund for Iraq, the United Nations, where deducted from 5% in compensation, and later used by Iraq, while from today onwards will handle Iraq with the financial wealth of full independence.

The Fayyad that «there are significant challenges to Iraq, as the Iraqi funds under that protected internationally by the United States, but today has become Iraq's money under the protection of Iraq, which requires effort and potential to rise to this matter, where he became Iraq now needs to force the protection of Iraqi assets and wealth, as there would judicially against Iraq to the presence of many lawsuits in this direction from the remnants of the invasion of Kuwait, and therefore the issue is not just out of Chapter VII, it is the responsibility of internal potential to meet the challenges.

 

Read more: http://dinarvets.com/forums/index.php?/topic/152384-iraq-would-emerge-from-chapter-vii-puts-new-challenges-money-will-become-vulnerable-to-lawsuits-after-it-was-protected/#ixzz2YsL0NTir

I dont see this as good. i mean...just rv...if we are so close. there is no reason whatsoever to bring up deleting three zeroes. It cant be to detour speculators, cause 3/4 of speculators think deleting zeroes is a rv

I'm with you Sandstorm. Leave my 3 zeroes alone.!  Just raise the value.  

[Rayzur]

Thanks!! SoCalDinar.... Interesting.... So in other words, it might be saying that one of the bigger obstacles to implementing the project of the delete the zeros are potential lawsuits from other countries relative to the invasion of Kuwait??? And after these lawsuits are ended, that they can the proceed to delete the zeros.....

 

I guess that could be connected... though not sure how the deletion of zeros would be impacted by lawsuits... (give em the multiple zero currency to pay em off, then delete zeros and make the currency they gave em worth less.... ewwwwwww that would be a ballsey move.... and announcing they are going to do it?)

 

I have to admit SoCalDinar that I am really myopic on this particular point, and am having a hard time wrapping my brain around anything other than what I want it to be, and in this case, I almost need to see it logically spelled out otherwise in order to break the hold my brain has on understanding this.....

 

I prefer to stay open to alternate explanations... in the end one tends to be not so blind sided by the eventual outcome... and have to admit I'm having a really hard time staying open... my brain seems frozen on this one.. And your post certainly does present a variable of possible understanding....

 

Thanks... I swear, the only way we're gonna get there is together in trying to understand this

 

(back to the drawing board )

[RVthereyet]

I am more of a lurker periodically than a everyday er here on DV. I have done a fare share of reading, investigating and such. However after reading this post and comments my way of thinking is:

If Iraq is talking about deleting zeros, AS SOME SAY Lop / bunny ears or.... like Turki did. How in any rightful way of thinking could they consider doing that?

OK the people in Iraq have nothing to worry about due to they have been using USD, BUT the Banks and all the other countries whom have so much more dinar than any of us that has invested in this speculative adventure. Think about that!!!

CBI and their 80 trill in reserves now becomes hardly nothing! (don’t know exact figures) How can they cut their own throats along with the other countries whom invested or has it in their reserves, JUST to make sure we (small timers in comparison to the big money holders) don’t benefit from a rv? I don’t think so personally!! And I don’t think they would jeopardize friendship with ALL the countries who have Iraq dinar by the boat loads just to save a few bucks.

Iraq wants the other countries business /partnership and trades, and they will not get that if they make the dinar the other countries have worth nothing!! Along with ALL the other big Dinar holders waiting to invest in Iraq.

If CBI reserves go down to nothing (if they lopped) how are they going to do anything with NO $. Wait another 20 yrs to rebuild reserve? Yea I dont think so the citizens there would start a war and kill them all. OK I vented, I feel better now this is just MY  worth.

[Rayzur]

Another Brick in the Wall (puzzle piece? )

 

Wonder if this might be what is referred to... This comes from an IMF report (albeit old, 2010)

 

33.
The authorities are committed to a liberal exchange regime and to removing all
restrictions under Fund jurisdiction. Iraq has a generally unrestricted current account
regime and a significantly liberalized capital account. However, four measures have been
identified to give rise to exchange restrictions subject to Fund approval. Three relate to a
requirement to pay all obligations and debts to the government before relevant payments are
transferred abroad, and one to an inoperative bilateral payments agreement with Jordan. The
authorities are considering measures to remove the identified restrictions, with a view to
accepting Article VIII of the Fund’s Articles of Agreement, but it may take time to resolve
the last restriction because of the pending resolution of Iraq’s debts to Jordan.
 

Thus far I would like to point out I have restrained myself from shouting :"Show me the Money" when I read this stuff...

[Catluver67]

Great post RVthereyet! I completely agree! Glad you shared!

[SocalDinar]

RVthereyet

Iraqs foreign reserves ( 76-80 billion USDs ) are held by the federal reserve.

This would only become worthless if the dollar crashes.

Rayzur,

Good post thanks. As always I think we see the same story told by different journalists and translations get skewed.

[Rayzur]

I wonder what Rayzur may have found.

 

Check this out Zig..... I have to go cross reference.... They are talking about Iraq compliance with Article 8 as we speak.... This frickin puzzle is turning into a 3D matrix chess board... geesh....

 

IMF Article VIII:

 

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. ( I dont love this bullet, and won't read much into it, as far as i can tell, physical ownership is not contrary vis-a vis border regulations. Indeed, there was an Iraqi magazine that talked about DT several times.... as well as many other references. I think this is n/a.

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 ( I don't see cash out tiers or Reno in here, anyone else?) 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.  (= No Iraq only ( in country) exchange... Exchange in US is cool)

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: (will have to cross reference, until then wtfk?)
  • (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.

[Boozer]

Yep

[zigmeister]

Thanks Rayzor, kind of under the weather at this point, so appreciative of your research.  Look at this with fresh eyes and coffee in the morning.

[Rayzur]

Hey Zig, drink some ginger and honey.... Have no idea what your under weather is, but that seems to fix many things....

 

While you're reading, check out how the value of one's currency happens..... (I know I posted this in the roo poo post but in case ya don't read that one.... I thought this stuff was really interesting... and if you're gonna be reading IMF stuff any way...

 

How the Wizard Makes Money Value  (IMF Section C of the Articles)

 

Schedule C: 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.
• 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.
• 3. Any member that does not intend to establish a par value for its currency under 1 above 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.
• 4. The Fund shall concur in or object to a proposed par value within a reasonable period after receipt of the proposal. A proposed par value shall not take effect for the purposes of this Agreement if the Fund objects to it, and the member shall be subject to 3 above. The Fund shall not object because of the domestic social or political policies of the member proposing the par value.
• 5. Each member that has a par value for its currency undertakes to apply appropriate measures consistent with this Agreement in order to ensure that the maximum and the minimum rates for spot exchange transactions taking place within its territories between its currency and the currencies of other members maintaining par values shall not differ from parity by more than four and one-half percent or by such other margin or margins as the Fund may adopt by an eighty-five percent majority of the total voting power.
• 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.
• 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 despite 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 despite 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 despite 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.

[zigmeister]

Wow this info makes my head spin Rayzor.  The second article I am inclined to think Iraq has to work with IMF?  They have to apply to them to raise or devalue their currency?  It seems if Iraq were to raise or lower their par value(face value) and it is agreed by the IMF, they have to wait so many days before they do it again.  Now after so many years and articles and stories I understood the IMF agreed Iraq's value should be around $3.00 or something like that.  So to get there they would have to go in increments?  Which could be years.  What I read from this it would be highly unlikely a jump from 1168 to $3.00 or so.  

 

As to Socal's thoughts on our favorite sentence in this article, I do not think they are speaking of lawsuits.  I believe it is geared towards people who bought dinar outside of the country.  There were a couple of articles referring to the same thing.  Most notably was Turki's statement they could right now cover 2.5 times dinar in and out of country.

 

Feeling better today, just ate something that did not go over to well.  Great job Rayzor, I don't know if we will ever figure it out, hopefully they will fill in the pieces of the puzzle soon.  I always enjoy reading your thoughts and insights.

[DinarDana]

 

Schedule C: 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.
• 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.
• 3. Any member that does not intend to establish a par value for its currency under 1 above 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.
• 4. The Fund shall concur in or object to a proposed par value within a reasonable period after receipt of the proposal. A proposed par value shall not take effect for the purposes of this Agreement if the Fund objects to it, and the member shall be subject to 3 above. The Fund shall not object because of the domestic social or political policies of the member proposing the par value.
• 5. Each member that has a par value for its currency undertakes to apply appropriate measures consistent with this Agreement in order to ensure that the maximum and the minimum rates for spot exchange transactions taking place within its territories between its currency and the currencies of other members maintaining par values shall not differ from parity by more than four and one-half percent or by such other margin or margins as the Fund may adopt by an eighty-five percent majority of the total voting power.
• 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.
• 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 despite 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 despite 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 despite 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.

 

 

Par Value : The nominal dollar amount present between the currency of two countries, which is based off of the current official exchange rate. As the exchange rate is adjusted upwards and downwards, the par value of currency ratio will rise and fall in accordance.

Read more: http://www.investorwords.com/8148/par_value_of_currency.html#ixzz2YwiIS9X6

 

Read more about the membership of the IMF

http://www.imf.org/External/Pubs/FT/AA/

 

I need to further study this, however, from reading these articles I believe this article is talking specifically between trading partners. My feeling this these rules are not in affect until an official exchange rate is established.

 

I have often believed that the exchange rate is going to be established by comparing the rates between Iraq's primary trading partners. Here is a paper that has been written about the subject http://www.lameta.univ-montp1.fr/Documents/DR2009-10.pdf

 

- I haven't much time to analysis this research but wanted to share this with you for further discussion.

 

Follow the money...... 

 

 

 

[zigmeister]

Thanks Dinar Dana, I am not half way through it but feel this is an important read in understanding MENA countries and exchange rates.  "Fear of Floating" vs "Fear of Pegging" is interesting to say the least.  Thanks again!

[Maggie123]

Thanks For The Great Information Rayzur! I Also Appreciate The Great Minds Here That Have Been Giving Their Input.

 

Wow This Is So Far Over My Head... But I'm Taking It All In And Hoping That It's Going To "Click" For Me.    

 

Thanks Again... I Know This Is Valuable Information For All Of Us.

[Amos9:13]

Since everyone is booming to the country like it's a gold rush...a float would be best...they really don't have anywhere to go but up.  I mean really you go from everything blown up....to wow electricity, phones, infrastructure, malls, Citibank lol....etc.....keep adding and let the dinar ride!