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Sandyf - Multi Currency Practice has nothing to do w/ currency auctions
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Sandyf - Multi Currency Practice has nothing to do w/ currency auctions
by roxy22222222 Thu Oct 26, 2017 9:34 pm
sandyf
I have no doubt that most will have heard at some point the gurus refer to the MCP or Multi Currency Practice. ...
It has absolutely nothing to do with currency auctions or using USD in Iraq. The MCP that the IMF have listed as as an exchange restriction on Iraq is to do with the settlement of international invoices.
Suppliers are submitting invoices to Iraq in their own currency and the Iraqi importers are paying the invoices at an exchange rate that deviates by more than 2% from the governments fixed exchange rate.
The IMF have requested that Iraq put some mechanism in place to prevent this happening. Companies that are having to pay over the odds to obtain foreign currency are trying to pass the loss on to the suppliers.
Although allowed under Art 14 this would be in breach of the requirements of IMF Article 8.
10.28.2017
~~~~~~~~
"If Kuiwat can revalue when they did so can Iraq now" Another fundamental misconception. When Iraq invaded Kuwait they made the IQD the national currency of Kuwait. The KWD lost value because it was no longer a national currency and could not be exchanged. It was never devalued. When the occupation came to an end the KWD was reinstated as the national currency of Kuwait at the same value as it was prior to the occupation, no revaluation.
10.26.2017
I have no doubt that most will have heard at some point the gurus refer to the MCP or Multi Currency Practice. ...
It has absolutely nothing to do with currency auctions or using USD in Iraq. The MCP that the IMF have listed as as an exchange restriction on Iraq is to do with the settlement of international invoices.
Suppliers are submitting invoices to Iraq in their own currency and the Iraqi importers are paying the invoices at an exchange rate that deviates by more than 2% from the governments fixed exchange rate.
The IMF have requested that Iraq put some mechanism in place to prevent this happening. Companies that are having to pay over the odds to obtain foreign currency are trying to pass the loss on to the suppliers.
Although allowed under Art 14 this would be in breach of the requirements of IMF Article 8.
10.28.2017
~~~~~~~~
"If Kuiwat can revalue when they did so can Iraq now" Another fundamental misconception. When Iraq invaded Kuwait they made the IQD the national currency of Kuwait. The KWD lost value because it was no longer a national currency and could not be exchanged. It was never devalued. When the occupation came to an end the KWD was reinstated as the national currency of Kuwait at the same value as it was prior to the occupation, no revaluation.
10.26.2017
roxy22222222- GURU HUNTER
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Re: Sandyf - Multi Currency Practice has nothing to do w/ currency auctions
by Ponee Sat Oct 28, 2017 4:54 pm
.
Ponee- Admin
- Posts : 38267
Join date : 2011-08-09
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