In the Aug, 5th, letter of intent to the IMF, signed by the 3 Stooges, I'm wondering about Section VI, article 21.

See Below.

Mr. Horst Köhler
Managing Director
International Monetary Fund
Washington, D.C. 20431



Dear Mr. Köhler:

The deterioration in the external environment and the failure of a large private bank have adversely affected confidence, put pressure on the peso, and weakened the public finances.
XXX
XXXXX
XXXXXXX
signed by
Sincerely yours,
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Jose Lois Malkún, Governor, Central Bank /s/
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Rafael Calderon, Secretary of, Finance /s/
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Carlos Despradel, Technical Secretary, of the Presidency
VI. Exchange Rate and Monetary Policies

21. The government is committed to a freely floating exchange rate. Intervention is being limited to what is necessary to achieve the net international reserves targets and to prevent excessive exchange rate volatility. However, if in the remainder of 2003 the net international reserves fall below the continuous monthly floor specified in the TMU, a general discussion of monetary and intervention policies will be initiated with IMF staff. A mechanism will be developed by end-November 2003 for the central bank to competitively access the private foreign exchange market. For this purpose, IMF technical assistance is being sought.




I'm waiting to see what that mechanism turns out to be.
Anybody have, some ideas???????


Thanks
Tim H.

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However, if in the remainder of 2003 the net international reserves fall below the continuous monthly floor specified in the TMU,
A mechanism will be developed by end-November 2003 for the central bank to competitively access the private foreign exchange market.
I guess we don't have to wait anymore.?

Tim H.