On March 28th, 2012 The IRTA Global Board of Directors approved a new comprehensive advisory memo titled “Guidelines & Recommendations for Barter Exchange Deficits.” The advisory memo explains how properly managed exchange deficits that fall within IRTA recommended guidelines can increase trade volume by “providing the right level of money supply sufficient to allow members to buy and sell freely within the system.”
The IRTA Deficit Advisory Memo, (posted below), defines the different types of deficits that exist in barter exchanges (exchange and system deficits) and presents a simple and easily understandable recommended parameter of 2.5 to 3.0 times monthly averaged trade volume as a maximum threshold. The Deficit Advisory Memo also provides specific recommended methods for exchanges to reduce their deficits so as to fall within the suggested IRTA guidelines.
IRTA Global Board member and officer, Annette Riggs says the Advisory Memo is a major positive step for exchanges and the public, “IRTA’s Deficit Advisory Memo provides a guide for industry veterans and those new to the industry to understand in clear terms the importance of trade deficit management and tax implications for trade exchanges. Following this advisory will benefit the health of the exchange, the exchange members and the community at large.” IRTA President, Michael Mercier also views the Advisory Memo as an important piece in protecting the public, “When a trade exchange ceases to exist it is a problem to the owner and the members as well. This directive will reduce failures in the modern trade and barter industry by helping owners and also protecting the public.”
IRTA thanks the entire IRTA Rules and Regulations Committee for their hard work on this most important advisory memo. The members of the committee are: Michael Mercier, Mary Ellen Rozinski, Annette Riggs, Harold Rice and Ron Whitney. An additional thanks also goes to John Strabley for sharing his wisdom and experience with the committee.