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Lady of the Lake
03-13-2010, 06:33 PM
info to support IRAQ HAS BEEN UNDER A "PROGRAM RATE" (http://dinarvets.doobla.com/viewtopic.php?f=10&t=4112#p4742)

http://dinarvets.doobla.com/styles/prosilver/imageset/icon_post_target_unread.gif (http://dinarvets.doobla.com/viewtopic.php?p=4742&sid=f06b0dbbcb64ce0819a03163d02d9829#p4742)by milndollarbabe (http://dinarvets.doobla.com/memberlist.php?mode=viewprofile&u=17&sid=f06b0dbbcb64ce0819a03163d02d9829) » Sat Mar 13, 2010 12:15 am
....these are things I have saved for a rainy day until they would become relevant....more supportive info..This was shabs talking....and he mentioned the EPCA which was mentioned in our discussions last night as one of the 3 things that the IMF listed for Iraq to complete. This is significant because he talks of the "program rate".... the programrate, imo... is the artificial rate that it is now....part of the plan.



SHABIBI:

What do you see being the challenges

in 2009 for banking in Iraq?

We still have plenty of challenges ahead

of us. We are hoping to increase our

dealings with banks from outside Iraq

and we will need to re-examine our

programmes with international financial

organisations like the International

Monetary Fund (IMF). We have been

working under an IMF programme

which is going to conclude at the end

of the year, whereby we will have

completed the 80 per cent of debt

reduction that was agreed under the

plan

further, here is the whole purpose of the program rate:

From the Emergency Post-Conflict Assistance (EPCA) program
> with the IMF, dated,
> September 2004
> Quote:
> II. DEFINITIONS
> 3. For purposes of monitoring under the program, a program
> exchange rate will
> be used. This program exchange rate will be the U.S.
> dollar/Iraqi dinar exchange
> rate on or about August 31, 2004, as reported by the CBI
> (ID 1,460 per U.S.
> dollar). The program exchange rate will be used to convert
> into Iraqi dinars the
> U.S. dollar value of all CBI foreign assets and liabilities
> denominated in U.S.
> dollars, as required. For CBI assets and liabilities
> denominated in SDRs and in
> foreign currencies other than the U.S. dollar, they will be
> converted in U.S.
> dollars at their respective SDR-exchange rates prevailing
> as of August 31, 2004,
> as published on the IMF’s website.
> http://www.imf.org/external/pubs/ft/...04/cr04325.pdf


Remember this?

early repayment of IMF ahead of new SBA (December 12, 2007) ^top^
The IMF announced today that Iraq has "completed the early repayment of its entire outstanding obligations to the IMF amounting to SDR 297.1 million (about US$470.5 million). The outstanding obligations of Iraq had been contracted under the Emergency Post-Conflict Assistance that was approved by the Executive Board on September 29, 2004... The repayment was made in advance of Iraq's request for a new Stand-By Arrangement, which is scheduled for discussion at the IMF's Executive Board on December 19, 2007. Under the original schedule, the final repayment of Iraq's outstanding obligations to the IMF would have taken place in 2009." The IMF stated that high oil prices enabled Iraq to repay ahead of schedule.



> From the Stand-By Arrangement [SBA] with the IMF, dated January
> 2006.
> Quote:
> II. DEFINITIONS
> 4. For purposes of monitoring under the program, a program
> exchange rate will
> be used. This program exchange rate will be set at ID 1,500
> per U.S. dollar. The
> program exchange rate will be used to convert into Iraqi
> dinars the U.S. dollar
> value of all CBI foreign assets and liabilities denominated
> in U.S. dollars, as
> required. For CBI assets and liabilities denominated in
> SDRs and in foreign
> currencies other than the U.S. dollar, they will be
> converted in U.S. dollars at
> their rates prevailing as of September 30, 2005, as
> published on the IMF’s
> website..
> http://www.imf.org/external/pubs/ft/scr/2006/cr061




Then he finishes the interview with this:


There has been a lot of speculation

that the Iraqi dinar might be revalued

at some point as the economy becomes

stronger as a result of increased

oil revenue. Is there going to be a

revaluation of dinar in the near future?



I always refrain from making any

comments on the subject of revaluation.

I refrain because everybody will always

believe a Central Banker over anyone

else on this matter, so I am not going to

say anything.