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Stryker Issues A Kaperoni Smack Down !


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Kap is right and Stryker has been sucking on to many paint fumes.

Kap is wrong on the 2%. He thinks the 2% refers to the spread between cbi selling price and the market price. It is not!

This is the extract from IMF Article 4 consultations with Iraq on exchange restrictions/MCP:

Restrictions NO. (8) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. The MCP arises from the absence of a mechanism to ensure that the official exchange rate and the market exchange rate do not deviate by more than 2 %. (Country Report No. 13/217)"

Now, how do we know for certain, the MCP that IMF hilited, refers to foreign exchange rate? and not cross rates or any other rates?

Just because they talk about 'official exchange rate and market exchange rate'; does not necessarily means the spread between Cbi selling rate and citizen buying rate a.k.a market rate?

The important question we have to ask is, What is the guiding principle on why IMF does not support MCP?

This is what IMF says in their annual foreign exchange report : -

" In reviewing the experience of the past ten years as summarized in the staff report, the Fund draws special attention to the fact that complex multiple rate systems damage the economies of countries maintaining them and harm other countries "

Clearly, IMF think, multiple currency system can be DAMAGING to OTHER members/countries.

Does Kap really thinks, iraqi citizens buying dollar at 1220 or 1250 or even 1300 dinar per dollar can be damaging to other countries economies? How is that?

*(CBI selling price: 1187/1190)*

According to IMF reports on article 4 consultations with Iraq for 2013; - Iraq maintains 8 exchange restrictions and 1 MCP. Why in their report, IMF lump MCP together with exchange restrictions on Iraq's inoperative BPA debt to Jordan as item no.8?

Inoperative BPA is a restriction, so what or where is the MCP?

- A BPA would GIVE RISE to a MCP, if it specifies rates that are consistent with market rates at the commencement of the arrangement's operation but does not provide (a mechanism) for such rates to be subsequently adjusted during the arrangement's operation to ensure that they will not at any time differ by more than 2% from the rates prevailing in the market"-

So maybe, in their BPA, they DONT have the mechanism to ensure the rates always remain within 2% at any given time. That's a MCP.

Another example of MCP - If a country maintains (as in uses) dual exchange rate system; fixed exchange rate and floating exchange rate for diff transactions, and the diff is more than 2%, that would also constitute to a MCP.

Even currency auctions could give rise to a MCP - "If the allocation of foreign currency exchange, outside the auction, is made at a diff exchange rates than the auction rate and the 2 rates may differ by more than 2%, the system gives rise to a MCP, unless there is a mechanism in place that prevent such spread from arising"

It is IMO, that the MCP hilited by IMF, does not refers to the spread between CBi selling rates and citizen buying rates (market rate).

I just dont see it that way.

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Catfight YEAH RIGHT.     They're BOTH wrong. We're still gonna be sitting here March 1.

Hey there, Kap! Long time no see! Has it been so long you thought we forgot this is one of your aliases? Nice butt though. Have you been hitting Curves?

Katie45 IS KAP, so of course you agree with yourself, Kap. lol     I will say this, Buti and I have read the guidelines issued by the IMF via this doc   "Other conventional fixed-peg arrangements

This was posted on another site,

 

 

He should argue with the IMF. Page 4 of the

 

STAFF REPORT FOR THE 2013 ARTICLE IV

 

CONSULTATION—INFORMATIONAL ANNEX

 

“The MCP arises from the absence of a mechanism to ensure that the official exchange rate and the market exchange rate do not deviate by more than 2 percent.

 

 

Then the CBI also makes a comment,

 

 

Statement by A. Shakour Shaalan, Executive Director for Iraq

 

May 13, 2013

 

#8 on page 2

 

 

8.

"The CBI is committed to progressively liberalize the foreign exchange market as capacity to prevent AML/CFT is developed. It has recently taken steps to simplify foreign exchange market regulations and this has led to the elimination of many exchange restrictions. The CBI is working closely with staff on complying with Article VIII of the Fund’s Articles of Agreement, as well as eliminating the remaining exchange restrictions and the multiple currency practice."

 

 

 

The definition to me is meaningless.  What counts is the 3 month waiting period once in compliance.

 

 

“The exchange rate may fluctuate within narrow margins of less than ±1 percent around a central rate, or the maximum and minimum values of the exchange rate may remain within a narrow margin of 2 percent for at least three months.”

Edited by katie45
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Katie, why only pick part of the text.

The whole text for restrictions on item no 8 reads :

an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. The MCP arises from the absence of a mechanism to ensure that the official exchange rate and the market exchange rate do not deviate by more than 2 %. (Country Report No. 13/217)

There must be a reason why IMF put them together on the same item number :)

If iraq pays jordan tomorrow, the MCP would be gone in a blink, because the MCP is related to BPA

Edited by zul
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Oy.. all those initials makey my head spin..

I guess I would not get an A if I were being graded on comprehension.

MCP = Multiple currency practices.

BPA = Bilateral Payment Arrangements

DB = Dinarbeliever

:D

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Here's Comments From The '180 Proof' Guru On The 2% Rule !

Notice How He Also 'Subtley' Puts In Excuses About Delays

Which Obviously Is To Try And Cover For His Previous Half Dozen Wrong RV Predictions ! :o

:D:D:D

12-16-2014 Newshound Guru Tlar If at 2% rule for 90 days is all important for Iraq to change the value of their currency, what did the IMF mean when they implied that their work with Iraq is done given they supposedly are only one month into a three month requirement? Based on...how difficult under the present monetary system it is to hold at 2% for an entire month let alone 90 days, one could almost assume that the IMF statement could mean they have "given up" on Iraq based on their history. We know this isn't true. Iraq has set a few dates when they thought they might RV only to pull back IMO because of the Maliki governments pressure. At the end of last year we know that the finance committee had let it slip that Turki had intended to delete the zeros in January of this year (2014). I speculated at the time that that leak caused a run on the banks as Iraqi's tried to get their dinars into a cash position. Either way, the CBI was not in compliance with the 2% rule.

12-16-2014 Newshound Guru Tlar You could make the argument that the 2% rule itself was the reason they did not RV on the dates they wanted to. But those who have watched this soap opera might take this view differently as the facts of the Maliki's involvement with this independent body from trying to muscle it, trying to raid it, from using the Judicial branch against it, to trying to discredit it, all in an attempt to loot it, was the true root cause of no RV until now. Rules are meant to be bent in cases where the benefits of doing so are greater than the deficits of doing so. I also firmly believe that this project is late. When Christine Lagaurd gave her speech in January she suggested 2014 would see monumental improvements to the world economy. So far that prediction has not come to pass. Once again, I feel Iraq may be partly to blame having taken much longer to rid itself of the dictator than the international community thought it would and to unwind the mess he had created. Just my thoughts...

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Lol ! Kaperoni Was Banned From DV 4 Years Ago ! :o

Therefore He (She) Has To Post Under A New Name ! ;)

I Actually Give Him Credit For The Amount Of Time And Dedication He Has Given To This Investment.

But I Completely Disagree With The Conclusions That He's Come Up With !

Not That What He Is Proposing Isn't A Possible Outcome But He Arrogantly Speaks In Absolutes ! :blink:

:D:D:D

Hey DinarThug are you saying kaperoni has been seduced by the dark side of the force; Obi one kenobi stated that "only a sith speaks in absolutes"- kaperoni must be a Sith Lord ! LMAO

PS I do like kaperonis views

Lol! DB,

It is almost 3.09am here. I dont think my eyes can hold much longer

I do love your input on the dinar your definately one of the Jedi masters on this forum
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Here's Kaperoni's Stable Mate Enorrste Dispelling Kap's 90 Day Hold Until Late February

By Saying That It Could Happen In January ! :o

Sorry Kap - I Had To Do It ! ;)

:D:D:D

12-19-2014 Newshound Guru Enorrste ...the street rate and official rate must be within 2% of each other PRIOR to allowing Iraq to move from Article XIV to Article VIII. This is a fundamental pre-requisite to making that move to Article VIII... The fact that the CBI concurs that it is doing what is necessary to get into compliance is also very encouraging. To me this is an indication that we are "coming down to the wire." I do not believe they will be allowed to move to Article VIII prior to completing the 90 days of stable currency. Having said that, however, I still hold out the very real possibility that they will begin the float prior to moving to Article VIII. This only makes sense, because, as I noted earlier, once they float the currency then the official rate and the street rate become identical. I am cautiously hopeful that the float could begin in mid or late January.

B)B)

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When IMF Boards concluded that Iraq still maintains some exchange restrictions and a MCP; esp on item no.8; we should read them as a whole -

'No.8: an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. The MCP arises from the absence of a mechanism to ensure that the official exchange rate and the market exchange rate do not deviate by more than 2 %. (Country Report No. 13/217)'

If we just pick some part of the sentences, out of context, and try to analyze them, we could be looking at the whole issue from a wrong perspective.

In this case, we should not just focus on the 2% while ignoring the inoperative bilateral payments agreement (BPA) part totally, because "inoperative or settlement of balances longer than 3 months could be considered as restrictions or Multiple Currency Practices".

Payment agreement is an important part of IMF Articles and IMF made very clear provisions for 'making payment and transfers' in their Articles.

Under Sections 2 and 3 of IMF article VIII provides that: members shall not impose or engage in certain measures, namely *restrictions on the making of payments* and *transfers for current international transactions,* discriminatory currency arrangements, or multiple currency practices, without the approval of the Fund.

The guiding principle in ascertaining whether a measure is a restriction on payments and transfers for current transactions under Article VIII, Section 2, is *whether it involves a direct governmental limitation on the availability or use of exchange as such*. Members in doubt as to whether any of their measures do or do not fall under Article VIII may wish to consult the Fund thereon.

Kap/Katie, i have nothing against you personally. I swear. But your interpretations of 2% thing, is just wrong.

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