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68converted
11-30-2009, 11:34 AM
It concerns who can revalue and devalue a country's currency. Bottom line the IMF cannot force it; the country in question has the ultimate decision based on what this article says. I was not able to find anything to refute it? Just another piece of info to educate for future investments, and this one of course

http://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html

fly dinair
11-30-2009, 11:43 AM
This would seem to indicate that the IMF can not force Iraq to RV. Am I reading that correctly? It would appear, judging by this, that an RV can fast turn into a political football with all of the vast and sundry interests involved.

Nice article!

Moses1234
11-30-2009, 11:55 AM
That's not my read of the article. The only thing the article mentions about the IMF is this:

"Since the 1930s, various international organizations such as the International Monetary Fund (IMF) have been established to help nations coordinate their trade and foreign exchange policies and thereby avoid successive rounds of devaluation and retaliation. The 1976 revision of Article IV of the IMF charter encourages policymakers to avoid "manipulating exchange rates...to gain an unfair competitive advantage over other members." With this revision, the IMF also set forth each member nation's right to freely choose an exchange rate system. "

breezin
11-30-2009, 12:22 PM
"Under a fixed exchange rate system, only a decision by a country's government or monetary authority can alter the official value of the currency."

Although this statement from the article is true, it does not take into account that Iraq had its' "program" rate set by the IMF in 2003 and the IMF dictated how much to allow that program rate to increase until Jan 2008.

IMO, the IMF is still actually calling the shots ... even if they allow Iraq to make the announcement.

scruzman
11-30-2009, 09:50 PM
ANd further more there may be something in Chpt 7 that give the IMF the right to step in and RV at a certain point if GOI is not doing so after repeated invitations! Just a surmise on my part.

skypiratedc10
11-30-2009, 11:12 PM
I also agree that this article is not talking about a country that has gone to war - been defeated - and is "under the care" of outside entities. Right now although more and more is handed over each day to the GOI, there is still a leash - actually more than one leash - These leashes are there in case the GOI, cannot or will not take on the responsibility to govern their people - The Powell Doctrine was easy to understand "We break it - we have to fix it." - That Doctrine is still valid even though he has moved on. I humbly suggest that this article has little to do with the Iraqi RV - it's timing - or what entities are both publicly, and not so publicly in control.

sfcdiaz
12-08-2009, 12:27 PM
thank you for the good info

GreenEyes
12-08-2009, 03:22 PM
Thanks 68.... Enjoyed....