ZIg Kaperoni : Hello
Kaperoni Zig, you love to stir the pot
Spectra Kaperoni hows things and what do you think about where we are with this DINAR?
Zig Kaperoni : Me?….I am just an innocent guy….. ;eye roll;
Spectra Kaperoni JUST TELL US ..I WON’T ATTACK YOU
Kaperoni Well if you take the word of parliament they plan to pass the laws needed this session to launch the market economy
Kaperoni But parliament never does what it says…so we wait and see
Spectra Kaperoni right
Zig Now where is that nice man, Sam??
Kaperoni Sam is funny, wants to try and make information posted by the IMF as misinformation or misunderstood information. If you read the entire context of the information it cannot be misunderstood
Zig Kaperoni : You are 100% sure of what you conclude??…..100%????????????????//
Kaperoni Zig, I don’t have to, the IMF answers it owns questions in the documentation.
Zig Maybe drop down to 99.9?…..LOL
Kaperoni Let me give you an example of Sam and what he is trying to convince people of…
Dave Zig Kap could be right……
blackgold Zig how goes it
blackgold Kaperoni how is it going
Kaperoni Hi Blackgold
Kaperoni A sentence from the IMF… “staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy. ”
Dave Kaperoni A sentence from CBI …no free float
Spectra Zig right consider
Kaperoni Sam want you to believe this means nothing..in fact they already did it. That they are already using a more flexible exchange rate policy.
Spectra Zig and with IRAQ a consider could take years
Kaperoni Dave I will address you in a minute
Kaperoni But if Sam read the entire paragraph he would see this sentence….
Dave call it cherry picking
Kaperoni “Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect,”
Spectra Dave yes leaving out putinent information
Zig I am no longer a mod but it would be interesting to see an uninterrupted exchange between Kap and Dave IMO….
Kaperoni Now if you read this in it’s entirety you can see it cannot already have happened. Not to mention it says specifically the “Balassa-Samuelson effect” which cannot be misunderstood.
Kaperoni “In 1964, academics Bela Balassa, a Hungarian economist, and Paul Samuelson, a Nobel-Laureate economist, independently observed that countries with higher levels of productivity growth experienced rapidly rising real wages and so appreciating real exchange rates.
Academic studies since have suggested the picture is not as simple as Mr Balassa and Mr Samuelson first thought and that many other factors can also influence the model.
However, many long term investors in emerging market currencies, for example, have been able to benefit from the appreciation of those currencies which is arguably due to the Balassa-Samuelson effect.”
The key here is the last sentence… “many long term investors in emerging market currencies, for example, have been able to benefit from the appreciation of those currencies which is arguably due to the Balassa-Samuelson effect.”
blackgold The Balassa-Samuelson Effect is a phrase that describes the result when countries with high productivity growth also experience high wage growth, which leads to higher real exchange rates.
Kaperoni So there is no confusion here The confusion is Sam
Zig Kaperoni : Sam says you are confused…..LOL
Kaperoni Ok, next is Dave. Dave, you should state things as “matter of fact” when you do not know the context of the statement. As in the worlds “no float”.
Dave IMF says end MCP correct?
Dave Kaperoni ALAQ STATED NO FREE FLOAT…
Kaperoni If you are so sure they would never float, tell me what tool they plan to use to counter inflation created by an influx of investment?
Young SC I came in at the right time lol
Kaperoni Dave again, what tool will they use?
Dave Dave IMF STATED end MCP? Kaperoni
Kaperoni Dave do you know what MCP means?
Kaperoni Do you have a clue? Tell me? What is MCP?
Dave MULIPLE CURRENCEY PRACTICE
Kaperoni Wrong! Try again
Kaperoni lol Wrong
Dave TEach me
Dave Linked ending the auctions
blackgold I wish people would use the three letter Abrev, but still write out what it means for dummies like me
Kaperoni MCP is the result of when a countries currency spread exceeds 2% and creates MCP. In other words it create different prices for the same goods in different parts of the country
blackgold thank you
Kaperoni it has nothing to do with 2 currencies
Dave Kaperoni thats how we work yes
Kaperoni So as of now, the CBI has met the 2% rule for a year and there is no MCP
Kaperoni They are in compliance
blackgold we have MCP in the US all over the place, even down the street
Dave Kaperoni IMF controls the spread….under managed float buy sell rates can only change that 2-3 % every 90 days
Kaperoni Part of compliance to get out of Article XIV to Article VIII is the ability to control that. So the IMF requires that before they could move to Article VIII.
Kaperoni Dave they will never be on a manged float because they want price discovery of the dinar. That occurs on FOREX
Dave IMFs intent is for CBI to earn money from growing the banking sector and not from Selling or being reliant on USD
Dave Kaperoni ALAQ stated Otherwise
Kaperoni I should correct myself..they will not initially be on a managed float..but they could at some point switch once price discovery has happened
Dave CANT CHANGE BACK AND FORTH
Kaperoni Again Dave, you do not understand the context. In fact, Alaq just said last weekend he wants “pressure” on the CBI.
Dave Kaperoni GO BACK 2 WEEKS THEN
Kaperoni What is the tool the CBI uses to relieve pressure?
Dave pROMOTE THE BANKING SECTOR
Kaperoni Dave first it was not 2 weeks ago..it was almost a year ago. lol. You finally found it 2 weeks ago, your late to the game.
Dave Well he stated it again verbatum not long ago
Dave yes i look at dates …..not those from 10 yrs ago…..
Kaperoni Dave the CBI cannot stop the auctions until it has something to replace it with. The auctions are the CBI’s source of revenue. The replacement is the float which allows the CBI to then buy/sell its currency on the world market like any other country that floats. This is not new.
Dave Kaperoni IMF has told them numerous times to end MCP
Kaperoni Yes Dave and they did lol
Kaperoni Dave are you adding value here or just being an ass?
Dave had an auction 1-2week ago
Kaperoni Well I want to stop in and discuss Sam’s confusion. I did that. Hope you have a great day.
Kaperoni See ya
Dave Do you read the news or just repost the same stuff
Zig Kaperoni : Bye….I remain confused…..lol…. ;dont no;
Zig Sam and I….Brothers in confusion….lol
Dave TRy reading the news
Sparky Zig see what happens when you interrupted my monologue?
Sparky Zig reasonable activity
Dave Zig Confused that IMF prefer that Iraq make money on the auctions to grow their Federal reserve?…or grow from the banking sector?
Dave 80 % of those folks do not have bank accounts
blackgold Do ya blame them If you did a survey you’d be surprised how many people don’t have accounts in the US
Dave blackgold had one since i had my paper route
blackgold God bless you but many don’t
Sparky blackgold under the table cash? Irs frowns on that
blackgold like the poor basketball player that got his first check of $300,000 and tried to cash it at the check cashing place and they just laughed at him
blackgold You can be educated but still out of touch with the real world
Sparky blackgold some are born fools, some grow into it
Zig Hopefully we will profit from this someday…..meanwhile we hang out and get on each others nerves…..lol
Spectra Zig Live and let live is my belief ,unless you try too force it on me
Zig But always fun when Kap visits…..lol
Young SC Why did Kapreoni stop talking?
Dave Zig Dont be confused…………
Zig Young SC : He has a pizza business to run…..
Spectra Zig Theres lots of different theories,who too say what IRAQ will do….no one knows….
Young SC Sam nor Kap do not read the news Dave
Spectra Zig he does not…lol
Young SC Kap kinda does only if it suits his opinion
Dave ARTICLE VIII AND ARTICLE XIV Multiple Currency Practices
MULTIPLE CURRENCY PRACTICES APPLICABLE SOLELY TO CAPITAL TRANSACTIONS
The phrase “multiple currency practices” in decisions of the Fund relating to the use of the Fund’s resources does not, except as otherwise provided, include multiple currency practices applying solely to capital transactions. Decision No. 8648-(87/104
Dave Young SC Thats direct from the IMF ….cant post link
Young SC Dave oh yes i know
Zig Young SC : Don’t dis my buddy Kap…..
Young SC Where is SAM
Sparky Young SC wow, where do you get that ridiculous thought?
Spectra Young SC That’s the way most people are nothing you can do about it!
Young SC Spectra Thats True
Spectra Young SC you have your opinions and your entitled tooo them..KAP HAS HIS!
Young SC Spectra yes i agree
Sparky Zig no charge!
Young SC But you have to go by facts not just opinions
Kaperoni Since people either do not understand what MCP is or want to believe it means some thing other than it does here is the direct IMF definition.
Kaperoni ARTICLE VIII AND ARTICLE XIV Multiple Currency Practices
MULTIPLE CURRENCY PRACTICES—POLICY
The Executive Board approves the decision set forth in SM/81/34, Supplement, 1 (3/17/81).
Decision No. 6790-(81/43), March 20, 1981, as amended by Decision No. 11728-(98/56),
May 21, 1998 SM/81/34, Sup. 1 The Executive Board has reviewed the Fund’s policy with respect to multiple currency practices. The Fund shall be guided by the approach outlined in the conclusions set forth below.
1. Official action should not cause exchange rate spreads and cross rate quotations to differ unreasonably from those that arise from the normal commercial costs and risks of exchange transactions.
a. (i) Action by a member or its fiscal agencies that of itself gives rise to a spread of more than 2 percent between buying and selling rates for spot exchange transactions between the member’s currency and any other member’s currency would be considered a multiple currency practice and would require the prior approval of the Fund.
(ii) An exchange spread that arises without official action would not give rise to a multiple currency practice.
(iii) Deviations between the buying and selling rates for spot transactions and for other transactions would not be considered multiple currency practices if they represent the additional costs and exchange risks for these other transactions.
b. Action by a member or its fiscal agencies which results in midpoint spot exchange rates of other members’ currencies against its own currency in a relationship which differs by more than 1 percent from the midpoint spot exchange rates for these currencies in their principal markets would give rise to a multiple currency practice.
If the differentials of more than 1 percent in these cross rates persist for more than one week, the resulting multiple currency practice would become subject to the approval of the Fund under Article VIII, Section 3.
Kaperoni Enjoy..gotta go.