RealtormC: Iraq has been inching towards Article VIII for years and the rate will end up being whatever it will be. You'll have to draw your own conclusions about your why questions.
Iraq is under Article XIV Transitional Agreement with a transitional or program rate. Your question should be: what else do they need to do to be Article VIII compliant to show the true rate of the IQD? They are showing signs that they are compliant with Article VIII, but officially according to the IMF website they are still under article XIV.
Article XIV: Transitional Arrangements
1. Notification to the Fund
2. Exchange restrictions
3. Action of the Fund relating to restrictions
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.
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
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
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.
MilitiaMan: A conversion is on going before our eyes. This just didn't get started yesterday.. It has been an ongoing process for many years, however, as of recent we see movement of oil and a very large move a week later in the USD, on a Thursday, and is now imo suggesting that we are in fact in the final stage of completion of Iraq's acceptance of Article 8, the ending of the Program rate presently and artificially imposed on the country, thus, apples to oranges if one thinks of comparing the VND or others. imo ~ MM
MilitiaMan: The UNSC released the final Sanction on the CBI.. That is the Currency of Iraq. That lifting was on 06/14/2018 after banks closed in Iraq. They do things for a purpose and when timing is at it's best. They "" (Think Central Banks) who are behind the large move up like we saw in the Dollar ($.02) is and was breathe taking for those that know how much money it takes to do such a move in the USD alone. ~ MM
"Forex is the largest and most liquid market in the world. In 2010, it accounted for more than $3 trillion of daily trading." ~ Investopedia.
MilitiaMan: What we just witnessed is telling me that what WS has mentioned to Frank imo is a conversion that we don't directly see, and or in the IMFs wording of "Convertibility of of foreign-held balances" They are now geared to be able to trade globally where by having the ability to convert currency for liquid value.. They are even rolling out a DINAR card for only the dinar!! That in itself falls in line with what Art 8 has in her terms. imo ~ MM
What is convertibility. "Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Convertibility is an important factor in international trade, where instruments valued in different currencies must be exchanged." WiKipedia
"The UNSC removed the Sanctions in Dec on the GOI and now they have removed them on the CBI. The Frozen Assets have been released. This Tanker of Oil left right after they unfroze the Assets! ~ Frank26 06/12/2018 CC
MilitiaMan: I hope this sinks in for us all. Click that link above and look at the massive move in the USD. Keep in mind gold usually will get hammered if the dollar runs like that and it didn’t fall one bit that day. It doesn’t get much better than this time frame we are in imo. We see articles showing the massive Billboard in preparation to show the Citizens what the Government has to show them. ~MM
MilitiaMan: What to expect? ~ MM
“ It broadcasts the largest advertising campaigns for government and commercial projects and is watched by over one million viewers a day.”
“ The description will be included in the Billboards and the Final Article IMO, if we are following proper procedure, then we should, imo, see a CBI statement of facts of the smaller notes!! And possibly also to be found on the MOJ website. Also, a second article will come. It will be released by a massive CBI statement via the media. The second article will be released in conjunction with the CBI facts via media, printed articles, radio and eventually by the Gazette imo, the RI rate will come out in between all of this. These steps I have laid out chronologically” ~ Frank26
MilitiaMan: Lets not forget the lesson we learned about the AMF / AAD and the IMF / SDR.. They are value related. Look at the notes that were posted and or look them up to get the real feel for ones self how real the IMF SDR 3x is.... Or equivalent to the AMFs / SDR.. I think you'll find the numbers fascinating and a very real possibility. Now keep in mind this is all unfolding before our eyes.. imo ~ MM (wink)
"The RI, is right in front or your eyes! ~ Frank26