China's Dalian Commodity Exchange, three years ago, 2004, overtook the Chicago Board of Trade to become the second largest commodity exchange in the world.

Zambia depended on one major commodity copper for its foreign exchange earnings.

Now, the commodity exchange itself, that concept, is not new to the world.

Developing countries in general remained heavily dependent on commodity exports for their foreign exchange earnings.

Now, in Ethiopia, we're in the process of designing the first organized Ethiopia Commodity Exchange.

This has been a major impetus behind recent efforts to establish a pan African commodity exchange.

I currently lead, in Ethiopia, an exciting new initiative to establish the first Ethiopia Commodity Exchange, or ECX.

The volatility of commodity prices poses a serious risk for the sustainability of growth, and better international coordination is required to reduce the instability of commodity prices and exchange rates.

Exchange of instruments of ratification on 21 September 2001 (Act No. 17,348).

Exchange of instruments of ratification on 5 December 1978 (Act No. 14,815).

Exchange of instruments of ratification on 25 February 1969 (Act No. 13,684).

Exchange of instruments of ratification on 20 August 1968 (Act No. 13,669).

The hearings also led to passage of the Securities Act of 1933 and the Securities Exchange Act of 1934.

These are the Royal Monetary Authority Act 1982, Financial Institution Act 1992, Foreign Exchange Regulations 1997 and the Prudential Regulations 2002.

Depressed commodity prices lead to overproduction to maintain foreign exchange income, a process which often leads in turn to environmental deterioration.

Moreover, variations in exchange rates, particularly between the US dollar (in which most commodity prices are expressed) and currencies in which imported goods are priced, also affect the actual gains obtained from increasing commodity prices.

That was, of course, the birth of the Chicago Board of Trade, which is the most famous commodity exchange in the world.

The most basic function of a commodity exchange is to boost market efficiency through reducing transaction costs by concentrating trade in one place.

The Chicago Board of Trade was established then for precisely the same reasons that our farmers today would benefit from a commodity exchange.

Different countries capacity to act depends on their indebtedness, foreign exchange reserves, and current account deficits.

Further, they act as a clearing house for exchange of information within the United Nations system.

Recycling commodity revenue and managing macro level commodity related risks

The creation of such an exchange will greatly improve conditions for commodity marketing and finance in Africa, including for national and intra African trade.

Since most African countries depend on from two to three main primary commodity exports for the bulk of their foreign exchange earnings, their external performance and external indebtedness are directly influenced by short term instability of primary commodity prices.

The dispute arose out of a sales contract for agricultural products which provided for arbitration under the Rules of the Commodity Exchange for Central Germany.

Emerging economies leaders fear spillover effects in commodity markets and distortions of exchange rates and capital flows that may compromise their own focus on financial stability.

This is more prevalent in the US, where regulators salaries are very low, especially in the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The rules were ambiguous as to who (the CEO of the Commodity Exchange or each party) had the right to appoint the members of the tribunal.

This indicates that much more needs to be done to enable commodity sectors throughout the developing world to benefit from the full range of services that an exchange can offer, benefits that the commodity sector in India is only now beginning to enjoy.

Commodity prices fell, too.

Latin America s Commodity Windfall

Commodity information reducing asymmetries

Commodity prices d (percentage)

UNCTAD Commodity Yearbook 1993

Many commodity dependent economies were caught in a vicious circle whereby investments in commodity production did not generate adequate returns because of falling commodity prices.

212. UNCTAD other commodity conferences and commodity meetings Trade and Development Board decision 7 (I)

278. UNCTAD other commodity conferences and commodity meetings Trade and Development Board decision 7 (I)

196. UNCTAD other commodity conferences and commodity meetings Trade and Development Board decision 7 (I)

Eventually, lower commodity prices and lower inflation will act like a huge tax cut for households, allowing interest rates to fall further and thus stabilize economic activity.

Financial risk management, typically, is focused on the impact on corporate value due to adverse changes in commodity prices, interest rates, foreign exchange rates and stock prices (market risk).

Again, a commodity for consumption.

Commodity information reducing asymmetries 9

strategies for commodity companies 15

International commodity agreements or arrangements

Commodity (litres) 1,000 litres Total