1. General obligations of members
2. General exchange arrangements
3. Surveillance over exchange arrangements
4. Par values
5. Separate currencies within a memberís territories
Section 1. General obligations of members
Recognizing that the essential purpose of the international monetary system is to provide a framework that facilitates the exchange of goods, services, and capital among countries, and that sustains sound economic growth, and that a principal objective is the continuing development of the orderly underlying conditions that are necessary for financial and economic stability, each member undertakes to collaborate with the Fund and other members to assure orderly exchange arrangements and to promote a stable system of exchange rates. In particular, each member shall:
(i) endeavor to direct its economic and financial policies toward the objective of fostering orderly economic growth with reasonable price stability, with due regard to its circumstances;
(ii) seek to promote stability by fostering orderly underlying economic and financial conditions and a monetary system that does not tend to produce erratic disruptions;
(iii) avoid manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage over other members; ~~ RIGHT HERE WE SEE THAT THE IMF OVERSEES EXCHANGE RATES. THIS LEADS ME TO BE OF THE OPINION THAT THE IMF WILL BE THE ONE TO GIVE IRAQ THE GREEN LIGHT "AFTER" IRAQ COMPLIES WITH ALL ARTICLES WITHIN THE IMF GLOBAL STANDARDS. THAT IS STRICTLY MY INTERPRETATION AND COMPREHENSION OF A WEALTH OF STUDY ON THIS SUBJECT. NOT JUST THIS ONE ARTICLE. SO PLEASE READ FOR YOURSELF AND TRUST YOUR OWN INSTINCTS. RED LILY ~ 3-25-14
(iv) follow exchange policies compatible with the undertakings under this Section
Section 2. General exchange arrangements
(a) Each member shall notify the Fund, within thirty days after the date of the second amendment of this Agreement, of the exchange arrangements it intends to apply in fulfillment of its obligations under Section 1 of this Article, and shall notify the Fund promptly of any changes in its exchange arrangements. ~READ 1 AGAIN::: Section 1. General obligations of members ~~
(b) Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include
(i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator,other than gold, selected by the member, or
(ii) cooperative arrangementsby which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, or
~~ REALIZE THE CAREFUL WORDING OF ALL OF THIS. NOW YOU HAVE TO CONSIDER "ALL" OTHER ARTICLES OF COMPLIANCE WITHIN THE IMF AS WELL. YOU CANNOT PICK CHERRY PICK ONE ARTICLE. IT IS GREAT NEWS THAT THEY ARE GOING OVER THIS ARTICLE WITH THE CBI. NO DOUBT ABOUT IT. I DO BELIEVE HOWEVER, IRAQ MUST FOLLOW ALL OF THE OUTSTANDING ARTICLES TO "T" IN ORDER TO BE WELCOMED WITH OPEN ARMS INTO THE GLOBAL COMMUNITY OF BANKING AND FINANCE.
IRAQ HAS MANY LAWS AND POLICIES THAT NEED TO PASSED AND APPLIED FOR THEM TO BE "UP TO PAR". IMO. CONTINUE LOOKING FOR BANKING LAWS, BANKING REFORM ACT AND APPLICATION, INVESTMENT LAWS, AND THE TARIFF LAWS IN PARLIAMENT. THESE ARE THE ONES THAT I BELIEVE WILL MAKE IRAQ A POWER TO BE RECKONED WITH (FINANCIALKY SPEAKING), ONLY "IF" THEY FOLLOW INTERNATIONAL LAWS/STANDARDS.
KEEP IN MIND THAT THIS WILL BE THE FIRST MAJOR REVALUATION OF IRAQ'S CURRENCY SINCE THE FALL OF THE DICTATOR SADDAM HUSSEIN. THERE IS NO DOUBT IN MY OWN MIND THAT IN ORDER FOR IRAQ TO BE TAKEN SERIOUSLY, THE IMF WILL CONTROL THIS PROCESS. IT IS TIME FOR IRAQ TO STOP ALL THE INFIGHTING AND GET DOWN AND DIRTY WITH THESE LAWS AND GET THEM OUT OF THE WAY. THEN THEY CAN GO BACK TO THROWING SHOES AT EACH OTHER. RED LILY ~
(iii) other exchange arrangements of a memberís choice.
(c) To accord with the development of the international monetary system, the Fund, by an eighty-five percent majority of the total voting power, may make provision for general exchange arrangements without limiting the right of members to have exchange arrangements of their choice consistent with the purposes of the Fund and the obligations under Section 1 of this Article. ~~ WHOOP! THERE IT IS ~~
Section 3. Surveillance over exchange arrangements
(a) The Fund shall oversee the international monetary system in order to ensure its effective operation, and shall oversee the compliance of each member with its obligations under Section 1 of this Article.
(b) In order to fulfill its functions under (a) above, the Fund shall exercise firm surveillance over the exchange rate policies of members, and shall adopt specific principles for the guidance of all members with respect to those policies. Each member shall provide the Fund with the information necessary for such surveillance, and, when requested by the Fund, shall consult with it on the memberís exchange rate policies.
~~ WHAT WAS THAT??? ::: Each member shall provide the Fund with the information necessary for such surveillance, and, when requested by the Fund, shall consult with it on the memberís exchange rate policies.::: ~~ IMF ULTIMATE POWER IMO RED LILY ~
The principles adopted by the Fund shall be consistent with cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, as well as with other exchange arrangements of a memberís choice consistent with the purposes of the Fund and Section 1 of this Article. These principles shall respect the domestic social and political policies of members, and in applying these principles the Fund shall pay due regard to the circumstances of members.
Section 4. Par values
The Fund may determine, by an eighty-five percent majority of the total voting power, that international economic conditions permit the introduction of a widespread system of exchange arrangements based on stable but adjustable par values. The Fund shall make the determination on the basis of the underlying stability of the world economy, and for this purpose shall take into account price movements and rates of expansion in the economies of members. The determination shall be made in light of the evolution of the international monetary system, with particular reference to sources of liquidity, and, in order to ensure the effective operation of a system of par values, to arrangements under which both members in surplus and members in deficit in their balances of payments take prompt, effective, and symmetrical action to achieve adjustment, as well as to arrangements for intervention and the treatment of imbalances. Upon making such determination, the Fund shall notify members that the provisions of Schedule C apply.
Section 5. Separate currencies within a memberís territories
(a) Action by a member with respect to its currency under this Article shall be deemed to apply to the separate currencies of all territories in respect of which the member has accepted this Agreement under Article XXXI, Section 2 (g) unless the member declares that its action relates either to the metropolitan currency alone, or only to one or more specified separate currencies, or to the metropolitan currency and one or more specified separate currencies. ~~ OH YES!! THERE IS MUCH MORE TO IT RED LILY ~
(b) Action by the Fund under this Article shall be deemed to relate to all currencies of a member referred to in (a) above unless the Fund declares otherwise.