Thursday, June 8, 2017

1973 - IMS, Oil, Gold and Currencies

This post explores relationship between the development of the International Monetary System (IMS) with the development in the gold and oil markets. It concentrates on important dates and looks into official relevant documents. Lets now look into the year 1973:
Japan lifts prohibition on imports of gold.  Singapore liberalized the Gold market for residents. 

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January: The 1973–1974 stock market crash begins, as a result of inflation pressure, the Nixon Shock and the collapsing monetary system.
January 11: U.S. Phase III price controls begin. Allows for voluntary instead of mandatory price control on all U.S. prices. This does not prevent a sharp rise in heating oil prices caused by a severe winter and shortage of product.
January 17: President Nixon suspends mandatory oil import quota on No. 2 heating oil through April 30.
January 23: Shah of Iran announces that the 1954 operating agreement between a consortium of oil companies and Iran will not be renewed when it expires in 1979. The consortium was formed in 1954 as a means to settle a dispute between a new ministry in Iran and the Anglo-Iranian Oil Company (AIOC). The consortium included Standard Oil of New Jersey, Standard Oil of California, SOCONY-Vacuum, the Texas Company, Gulf, Royal Dutch-Shell, the Compagnie Francaise de Petroles, and the AIOC.

February 1: EC PROPOSALS ON COOPERATION AGREEMENT WITH OIL PRODUCERS - 1973THEHA00564_b
February 6: 3. Conversation Among President Nixon, Secretary of the Treasury Shultz, and the Chairman of the Federal Reserve System Board of Governors (Burns) 
February 28: Iraq and IPC reach an agreement on compensation for nationalization. 

MarchSpecial Rule No. 1 reimposes mandatory (Phase II) price controls on the 23 largest oil companies. Smaller companies, representing 5 percent of the market, enjoy uncontrolled prices. 
March 9: IRAQ OIL - 1973LONDON02864_b
March 10: 1973PARIS06020_b - AMBASSADOR IRWIN' S AMERICAN CLUB SPEECH
March 12: MARCH 11-12 EC COUNCIL ( FINANCE) - INTERNATIONAL MONETARY CRISIS - 1973ECBRU01302_b
March 13: PRESS REPORTS - GOJ RESPONSES IN DIET ON MONETARY SITUATION - 1973TOKYO02927_b
March 14: MIN FIN AICHI STATEMENT ON PARIS MONETARY CONFERENCE - 1973TOKYO03047_b
March 14: 1973JIDDA01059_b - SAMA GOVERNOR: NO SPECULATION 
March 15: 1973PRETOR00846_b - SA GOLD AND FOREIGN EXCHANGE RESERVES 
March 16: Shah of Iran and Consortium members agree to nationalize all assets immediately in return for an assured 20-year supply of Iranian oil.  
March 16: OPEC discusses raising prices to offset decline of U.S. dollar value.
March 17: 1973BRUSSE01457_b - SECRETARY SHULTZ TRIP 
March 19: CONVERSATION BETWEEN CHANCELLOR BRANDT AND SECRETARY OF THE TREASURY SHULTZ - 1973STATE050189_b
March 20: CLARIFICATION OF AICHI VIEWS ON DOLLAR CONVERTIBILITY - 1973TOKYO03261_b
March 28: 168. Memorandum From the President's Assistant for International Economic Affairs (Flanigan) to President Nixon
March 30: ORTOLI ON US- EC RELATIONS - 1973BONN04738_b

April 1: OPEC increases posted prices by 5.7 percent.
April 12: 1973THEHA01721_b - EMMINGER VIEWS ON FUTURE ROLE OF DOLLAR  
April 18: COMMISSION PAPER ON THE SECOND STAGE OF ECONOMIC AND MONETARY UNION - 1973BRUSSE02138_b
April 18: U.S. Government ends Mandatory Oil Import Program. Program, established in 1959 by President Eisenhower, had limited imports of crude and product east of the Rocky Mountains to a percentage of domestic crude production. 
April 20: LOCAL PRESS: YAMANI STATEMENT & PRESIDENT' S OIL MESSAGE - 1973STATE075169_b

May 4: 1973PARIS12302_b - VIEWS OF FRENCH FINANCE MINISTER ON MONETARY SITUATION
May 11: OPEC PARITY NEGOTIATIONS BREAK DOWN - 1973VIENNA02951_b
May 19: 1973PARIS13924_b - NIXON- POMPIDOU SUMMIT: AGENDA ITEM II A - INTERNATIONAL MONETARY REFORM

June 1: Eight OPEC countries raise posted prices by 11.9 percent.
June 11: Libya nationalizes Bunker Hunt concession; Nigeria acquires 35 percent participation in Shell-BP concession.
June 14: Nixon administration imposes 60-day economy-wide price freeze, superseding Special Rule No. 1 for oil companies.
June 21: 1973OECDP17066_b - VAN LENNEP DECISION ON IMF JOB OFFER

July 5: CONVERSATION WITH FINANCE MINISTER SCHMIDT - 1973BONN09594_b
July 13: POSSIBLE EC COMMISSION REACTION TO MONETARY SITUATION - 1973ECBRU03975_b
July 17: VIEWS OF GOF OFFICIAL ON LINK BETWEEN MONETARY SITUATION AND TRADE - 1973PARIS19556_b

August: Libya nationalizes 51 percent of Occidental Petroleum concession and of the Oasis consortium. 
August 2: GISCARD REPORTS ON WASHINGTON C-20 MEETING - 1973PARIS20979_b
August 3: DUISENBERG ON C-20 MEETING - 1973THEHA03402_b 
August 4: PETROLEUM MEETING BETWEEN GEORGE BENNSKY AND EC COMMISSION VICE PRESIDENT HENRI SIMONET

August 7: 1973PARIS21327_b - HEIKAL ON OIL AS POLITICAL WEAPON 
August 7: 50. Memorandum From the President's Assistant for National Security Affairs (Kissinger) to President Nixon 
August 9: 1973STATE157536_b - ARAB LEAGUE CALLS MEETING TO DISCUSS ARAB RESERVES 
August 9: 1973ECBRU04614_b - ECONOMIC AND MONETARY UNION -- EC COMMISSION REPORT ON PROGRESSIVE POOLING OF RESERVES AND ADJUSTMENT OF SHORT-TERM MONETARY SUPPORT 
August 12: 1973JIDDA03428_b - MINIMAL SAUDI REVALUATION  
August 13: SUBJECTS FOR DISCUSSION AT SEPT 15 OPEC MEETING - 1973JIDDA03461_b
August 16: FULL TEXT PROVIDES FURTHER POINTS IN GISCARD TIME INTERVIEW - 1973PARIS22080_b
August 17: President Nixon's Cost of Living Council imposes two-tier price ceiling on crude petroleum sales: production of "old" oil (that produced at or below 1972 levels from existing wells) to be sold at March 1973 prices plus 35 cents; production of "new" oil (that produced above 1972 levels from existing wells and oil produced from new wells) to be sold at uncontrolled prices. 
August 23: 1973STATE167505_b - SAUDI GOVERNMENT CONSIDERATION OF CEILING ON OIL PRODUCTION
August 30: YAMANI'S VISIT TO TEHRAN - 1973TEHRAN06189_b

September: Kuwait rejects gradual participation increase plan, insists on immediate 60 percent participation. 
September 1: Libya nationalizes 51 percent of nine other companies' concessions: Esso, Libya/Sirte, Mobil, Shell, Gelensberg, Texaco, SoCal, Libyan-American (ARCO), and Grace. 
September 4: 1973ROME09110_b - CONFERENCE ON INTERNATIONAL MONETARY REFORM AT SIENA 
September 4: OIL - NIOC POLICY AND COMMITMENTS FOR CRUDE SALES - 1973TEHRAN06277_b
September 5: Conference of less developed countries approves forming "producers' associations," calls for withdrawal of Israeli forces from occupied Arab lands. 
September 15: OPEC supports price hikes and designates six Persian Gulf countries to negotiate collectively with companies over prices. Other members to negotiate individually. 
September 18: DRAFT MEMCON SECY SHULTZ CONVERSATION WITH FONMIN OHIRA SEPT 13 - 1973TOKYO12046_b
September 25: U.K. PRESS ON C-20 AND IMF - 1973LONDON10985_b 
September 26: MORNING SUMMARY OF SIGNIFICANT REPORTS - 1973STATE191329_b2
September 26: SEPTEMBER 24 PRESS BRIEFING BY SECRETARY SHULTZ THERE FOLLOWS THE TRANSCRIPT OF A PRESS CONFERENCE BY SECRETARY SHULTZ - 1973NAIROB06498_b
September 27: 1973PARIS25380_b - POMPIDOU CONFERENCE: INTERNATIONAL MONETARY SYSTEM

October 5: 1973LUXEMB00707_b - PRIME MINISTER COMMENTS ON IMF MEETING 
October 28: 54. Memorandum From Secretary of the Treasury Shultz to President Nixon 
October 5: GOF DISAPPOINTMENT WITH NAIROBI MEETING - 1973PARIS26182_b
October 6: Beginning of fourth Arab-Israeli War. 
October 7: n/a - 1973STATE199684_b
October 7: Iraq nationalizes Exxon and Mobil shares in Basrah Petroleum Company representing 23.75 percent equity in the company. 
October 8: OPEC meets with oil companies to discuss revision of 1971 Tehran agreement and oil prices. Negotiations fail. 
October 11: GOF ASSESSMENT OF NAIROBI MEETING - 1973STATE202121_b
October 12: The United States initiates Operation Nickel Grass, an overt strategic airlift operation to provide replacement weapons and supplies to Israel during the Yom Kippur War. This followed similar Soviet moves to supply the Arab side. 
October 12: OIL COMPANY OFFICIALS' MEETING WITH DEPUTY SECRETARY OCTOBER 10 - 1973STATE202689_b
October 16: SAUDI WARNING TO EUROPEAN COMMUNITY - 1973JIDDA04548_b
October 16: The Gulf Six (Iran, Iraq, Abu Dhabi, Kuwait, Saudi Arabia and Qatar) unilaterally raise the posted price of Saudi Light marker crude 17 percent from $3.12 to $3.65 per barrel and announce production cuts. 
October 17: OPEC oil ministers agree to use oil weapon in Arab-Israeli War, mandate cut in exports, and recommend embargo against unfriendly states. 
October 19: US President R.Nixon requests Congress to appropriate $2.2billion in emergency aid to Israel. This decision triggered a collective Arab response. Libya proclaims an embargo on oil exports to the United States; Saudi Arabia and other Arab states follow. 
October 20: ARAB THREATS TO WITHDRAW FUNDS FROM U.S. BANKING AND FINANCIAL INSTITUTIONS - 1973JIDDA04616_b
October 20: SAUDI MINISTER OF PETROLEUM'S ACCOUNT OF KUWAIT ARAB OIL MEETING - 1973JIDDA04615_b
October 23: Arab oil embargo extended to the Netherlands. 
October 23: SAUDI BAN ON OIL SHIPMENTS TO U.S - 1973JIDDA04663_b
October 24: YAMANI INFORMS JAPANESE OF 14-15 PERCENT CUT UNLESS ACTION TAKEN - 1973JIDDA04688_b
October 30: VIEWS OF SAUDI PETROLEUM MINISTER: SAUDI-AMERICAN RELATIONS AFTER PEACE IS RESTORED; THE CARROT (PART III OF III) - 1973JIDDA04769_b

November 1: 55. Memorandum From John Reynolds of the Federal Reserve System Board of Governors Staff to the Chairman of the Federal Reserve System Board of Governors (Burns) 
November 3: 1973TELAV08901_b - ISRAEL'S FOREIGN EXCHANGE POSITION 
November 5: Arab producers announce 25 percent cut in production below September levels. Further cuts of five percent are threatened. 
November 6: 1973BONN16051_b - FRG FINANCE MINISTER SCHMIDT ON GOLD 
November 8: MEETING OF UNDER SECRETARY CASEY WITH EC COMMISSION VICE PRESIDENT SIMONET
November 8:  OAPEC MEETING IN KUWAIT: ATEEQI COMMENTS ON EC SHARING, NATIONALIZATION OF AMERICAN OIL INTERESTS AND USE OF MONETARY MEASURES - 1973LONDON13099_b
November 13: 56. Editorial Note  alias (Termination of Gold pool)   
November 14: BANK OF FRANCE GOVERNOR ON TERMINATION OF 1968 WASHINGTON GOLD AGREEMENT - 1973PARIS29366_b
November 15: 1973LONDON13395_b - BRITISH REACTION TO TERMINATION OF 1968 WASHINGTON GOLD AGREEMENT 
November 16: 1973BRUSSE06563_b - BELGIAN FINANCE MINISTER ON GOLD 
November 16: 1973STATE227277_b - TWO-TIER GOLD SYSTEM 
November 18: Arab oil ministers cancel the scheduled 5 percent cut in production for EEC. 
November 18: SAUDI LIMIT ON POL GROWTH MAY STILL BE LIBERAL - 1973JIDDA05099_b
November 19: DIEDERICHS ON END OF TWO-TIER SYSTEM - 1973PRETOR04211_b
November 20: 1973LONDON13568_b - TWO-TIER GOLD SYSTEM 
November 20: INDIA JOINS LIST OF PREFERRED COUNTRIES CONFIDENTIAL - 1973JIDDA05136_b
November 20: SAUDI OIL PRODUCTION LIKELY TO RISE DRAMATICALLY FOLLOWING A PEACE SETTLEMENT SECRET - 1973JIDDA05123_b
November 21: 1973PARIS30004_b - TWO-TIER GOLD SYSTEM 
November 21: 1973ECBRU06770_b - EC COMMISSION VIEWS ON GOLD IN INTRA-EC SETTLEMENTS 
November 21: STAGE TWO OF EMU - 1973PARIS30027_b
November 23: Arab summit conference adopts open and secret resolutions on the use of the oil weapon. Embargo extended to Portugal, Rhodesia, and South Africa. 
November 23: MORNING SUMMARY OF SIGNIFICANT REPORTS - 1973STATE230517_b
November 23: OIL SITUATION IN SWEDEN - 1973STOCKH04169_b
November 26: PETROLEUM MINISTER YAMANI'S ALLEGED STATEMENTS ON ARAB NEXT STEPS - 1973JIDDA05224_b
November 26: 57. Memorandum From Secretary of the Treasury Shultz to President Nixon 
November 27: President Nixon signs the Emergency Petroleum Allocation Act (EPAA). Authorizes petroleum price, production, allocation and marketing controls.

December 3: 201. Memorandum From the President's Assistant for National Security Affairs (Kissinger) to President Nixon 
December 4: 1973PRETOR04405_b - PRESS REACTIONS TO ARAB OIL BOYCOTT 
December 5: PRIME MINISTER'S STATEMENT ON OIL SITUATION - 1973PRETOR04436_b
December 5: ARAB MINISTERS WARN SWEDEN ON OIL - 1973STOCKH04318_b
December 9: Arab oil ministers announce a further production cut of 5 percent for January for non-friendly countries. 
December 11: MEETING WITH EC COMMISSION VICE PRESIDENT SIMONET ON THE OIL SITUATION - 1973ECBRU07183_b
December 11:  CONTINUED EC COMMISSION CONCERN OVER THE OIL SITUATION - 1973ECBRU07184_b
December 20: SECRETARY'S PROPOSAL FOR AN ENERGY ACTION GROUP; SIMONET'S VIEWS - 1973ECBRU07417_b 
December 21: MORNING SUMMARY OF SIGNIFICANT REPORTS - 1973STATE248798_b
December 21: SIMONET PRESS CONFERENCE ON OIL SITUATION - 1973ECBRU07444_b
December 21: PRICING POLICIES AT OPEC MEETING - 1973TEHRAN09001_b
December 22: OPEC Gulf Six decides to raise the posted price of marker crude from $5.12 to $11.65 per barrel effective January 1, 1974. 
December 25: Arab oil ministers cancel January 5 percent production cut. Saudi Arabian oil minister promises 10 percent OPEC production rise.
December 27: POSSIBLE EC COOPERATION AGREEMENTS WITH OIL PRODUCERS GOVERNMENTS; SIMONET CONTEMPLATING TRAVEL TO MEDITERRANEAN - 1973STATE250884_b

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I am giving this research to free public domain
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Thursday, February 2, 2017

IMF - Global Reserve System Documents


List of the paper on the IMS reform.

Fund's papers

The Liberalization and Management of Capital Flows — An Institutional View; November 14, 2012
    - Paper
    - PIN
    - IMF Survey article
Reforming the Economic System Podcast Martin Wolf; June 8, 2012
Liberalizing Capital Flows and Managing Outflows; May 4, 2012
    - Paper
    - PIN
    - Background Paper
Capital Inflows, Exchange Rate Flexibility, and Credit Booms; Magud, Reinhart and Vesperoni; February 1, 2012
Internationalization of Emerging Market Currencies: A Balance Between Risks and Rewards; Maziad, Farahmand, Wang, Segal and Ahmed; October 19, 2011
Financial Deepening and International Monetary Stability; Goyal, Marsh, Raman, Wang and Ahmed; October 19, 2011
Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System (IMF Book Event); Eichengreen; October 19, 2011
    - Event page
    - IMF Survey Article
The IMF and the International Monetary System: Lessons from the Crisis (Per Jacobsson Foundatation Lecture); Weber; September 25, 2011
    - Text of the lecture
    - Video of event
Strengthening Assessing Reserve Adequacy; IMF Policy Papers; February 2011
Enhancing International Monetary Stability—A Greater Role for the SDR?; February 2011
    - Public Information Notice
    - Main Paper
    - Supplement
Reserve Accumulation and International Monetary Stability; April 2010
    - Public Information Notice
    - Main Paper
    - Supplement
Exchange Rate Regimes and the Stability of the International Monetary System : Overview only; Atish R. Ghosh, Jonathan D. Ostry, and Charalambos Tsangarides; 2010
The Debate on the International Monetary System; I. Mateos y Lago, R. Duttagupta, R. Goyal; November 2009
A New Bretton Woods?; Boughton; March 2009

Papers written for the G-20

G20 Leaders' Declaration; Los Cabos, Mexico; June 9, 2011
G20 Cannes Summit Final Declaration; Cannes; November 4, 2011
G20 Leaders Summit Final Communique; Cannes; November 4, 2011
Communiqué of Finance Ministers and Central Bank Governors of the G-20; Paris, October 15, 2011
    - English
    - Français
Palais Royal Initiative (Camdessus Group) ReportLonger version (February 2011) | Initial Report (January 2011)
G20 Principles for Cooperation between the IMF and Regional Financing Arrangements, as endorsed by G20 Finance Ministers and Central Bank Governors October 15, 2011

Other papers/commentaries

The renminbi bloc is here: Asia down, the rest of the world to go?; Subramanian and Kessler; October 27, 2012
The Renminbi Challenge; Eichengreen; October 9, 2012
The dollar's days as reserve currency are numbered -- Subscription required; Eichengreen; October 8, 2012
The Federal Reserve and Currency Wars; Ocampo; October 2, 2012
The Dollar and its Discontents; Olivier Jeanne, May 31, 2012
The next steps in ASEAN+3 monetary integration; Pradumna B. Rana, 27 May 2012
When did the dollar overtake sterling as the leading international currency? Evidence from the bond markets; Chitu, Eichengreen and Mehl; May 23, 2012
    - Summary
    - Paper (for subscribers only)
Beggar-thy-neighbours? Spillover effects of exchange rates; Mattoo, Mishra and Subramanian; May 23, 2012
Country Size, Currency Unions, and International Asset Returns -- Abstract only, access to full paper for subscribers; Hassan; May 2012
Bubble Thy Neighbor: Portfolio Effects and Externalities from Capital Controls -- Abstract only, access to full paper for subscribers; Forbes, Fratzscher, Kostka and Straub; May 2012
Prudential Policy for Peggers -- Abstract only, access to full paper for subscribers; Schmitt-Grohe and Uribe; May 2012
The turn of emerging countries; Angeloni; February 23, 2012
Europe v. World; Truman; February 14, 2012
Don't let the euro-crisis go east; Bénassy-Quéré, Fan, Kawai, Kim, Park, Pisani-Ferry, Vines and Yu; February 3, 2012
Gold and the international monetary system; Chatham House; February 2012
The ten roots of the Euro crisis; Darvas; January 11, 2012
The New International Economic Disorder; El-Erian; December 21, 2011
Reform of the international monetary and financial system; Bush and Farrant; December 21, 2011
The Dollar’s Long Tail; Sanyal; November 28, 2011
What makes a reserve currency? -- Requires subscription; FTAlphaville; October 5, 2011
How to deal with a global Triffin dilemma; Saccomanni; October 4, 2011
The Triffin dilemma revisited; Bini Smaghi; October 3, 2011
Currency wars: Lessons from the US experience: 1973-95; Bordo and Humpage; October 3, 2011
An Examination of U.S. Dollar Declines; Roosevelt D. Bowman and Jan J. J. Groen; September 26, 2011
Currency wars; Dadush and Eidelman; September 23, 2011
Managing exchange rate misalignment and current account imbalances -- ECB Research Bulletin; Dedola; Summer 2011, pp. 2-7
Countering the Contagious West; El-Erian; September 19, 2011
Reforming the International Monetary System; Farhi, Gourinchas and Rey; September 19, 2011

    - e-Book
    - Article
Monetary policy before the crisis; Gerlach and Moretti; August 2011
International Financial Crises and the Multilateral Response: What the Historical Record Shows -- Abstract only, access to full paper for subscribers; Barkbu, Eichengreen and Mody; August 2011
Dollar Illiquidity and Central Bank Swap Arrangements During the Global Financial Crisis -- Abstract only, access to full paper for subscribers; Rose and Spiegel; August 2011
What Can Replace the Dollar?; Eichengreen; August 2011
The capital flow conundrum; Dadush, U. and Stancil, B.; July 2011
A Post-Crisis World of Risk; Spence, M; June 2011
How to Kill a Dollar; Eichengreen, Barry; June 2011
Why are reserves so big? And who’s to blame?; Dadush and Stancil; May 2011
The Bear of Bretton Woods; Eichengreen; April 2011
Reform of the international monetary system: Some concrete steps; Bénassy-Quéré, Pisani-Ferry and Yu; March 2011
The Long March Towards a Multipolar Monetary Regime; Bénassy-Quéré and Pisani-Ferry; February 2011
Why world needs three global currencies -- Requires subscription; Bergsten; February 2011
Currencies: Strength in reserve -- Requires subscription; Beattie; February 2011
Quelle Reforme Pour Le Systeme Monetaire International? -- in French; Farhi, Gourinchas and Rey; January 2011
International Monetary System; Banque De France; 2010
International Monetary Arrangements; Landau; September 2010
Does the SDR have a future? ; Cooper; March 2010
The Dollar: Dominant no more?; Eichengreen; January 2010
Understanding SDRs; Williamson; 2009
The dollar's fall reflects a new role for reserves -- Requires subscription; Feldstein; December 2009
What Triffin dilemma?!; Chavelle; October 2009
On the Agenda for Bretton Woods II; Williamson; October 2009
Why SDRs Could Rival the Dollar; Williamson; September 2009
The Chinese Proposal for a New Global Super CurrencyRequires Subscription; Roubini; June 2009
Will SDRs supplant the dollar?; Humpage; May 2009
We should listen to Beijing's currency idea -- Requires subscription; Bergsten; April 2009
Why agreeing on a new Bretton Woods is vital and so hard -- Requires subscription; Wolf; Financial Times; November 2008
The IMF as a global Fed; Chavelle; October 2008
End of the BWII regime; Setser; October 2008
The Fund must be a global asset manager -- Requires subscription; Bordo and James; October 2008
Why the euro will rival the dollar; Chinn and Frankel; 2008
Blueprint for Reform; Sachs; 2008
Will there be a dollar crisis? -- Abstract only, full text requires subscription; Krugman; 2007
From World Banker to World Venture Capitalist: US External Adjustment and the Exorbitant Privilege -- Abstract only, full text requires subscription; Gourinchas and Rey; 2005
An Essay on the Revived Bretton Woods System; Dooley, Folkerts-Landau and Garber -- Abstract only; 2003

Source: http://www.imsreform.org/reserve/docs.html