Information on the issuance of a new Iraqi currency. Soon

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Information on the issuance of a new Iraqi currency. Soon


Baghdad/safe golden

The Central Bank seeks to delete the three zeros of the Iraqi currency since 2003. Which raises many concerns on the street level and the business and financial community and economists seem divided between supporters of the project saw an opportunity to reduce the rates of inflation and unemployment and forewarned of economic shocks might prevail in the Iraqi market by implementing this project.

The project has been postponed after the Central Bank introduced its amendments, most of the time because of fears based on the most unruly security situation and open market to foreign goods and counterfeit currency circulating on the market in addition to rampant corruption in the country.

The Iraqi news agency quoted a member of the Finance Committee in Parliament, Abdul Hussein Al-yasiri in fourth from last September as saying that 2014 will delete the zeros of the Iraqi currency, in coordination with the Central Bank. Al-yasseri said that this project will reduce the size of the national currency in circulation of four billion Iraqi dinars to 1 billion.

, Said the Chairman of the Finance Committee in the House of Haidar Al-Abbadi, it is possible to delete zeros from the current currency, but it has been postponed until after the parliamentary elections, adding that studies are now to establish safeguards to reduce fraud, and make sure that trading in the current currency.

The process of deleting zeros was postponed more than once, until called on Parliament's Economic Committee, reported channel "East" on the 7th of July, the Central Bank, to speed up the process of deletion of zeros of the Iraqi currency in a press conference that the deletion of zeros will increase the value of the Iraqi dinar will be reflected positively on the issue of reducing unemployment and poverty in the country.

But the financial advisor in the "North Bank" beneficial Elias said that the deletion of zeros are only administrative, process equation of cash must remain as they are, that the purchasing power of the new currency must be equal to the old currency. Elias said that trading in both currencies for up to three years old to withdraw gradually from the market. Elias predicted that highlights the problems if not resolved operations of the creditor and the debtor or if the any payments and withdrawals. But it would not affect inflation rates or poverty.

, Vice Chairman of the Finance Committee in the Iraqi Parliament Ahmed Faizullah the wholesome Elias, noting that the deletion of zeros will not alter the purchasing power of the Iraqi dinar because it is linked to the volume of industrial production and import. What saved the Iraqi dinar is owning the Central Bank cash reserve of hard currency might formed engaging cover to the dinar. Called Faizullah to not implement the project at this time because it could confuse the market and citizens alike.

Amid those views the Commissioner for "Breeze" stock trading for enas Mohammed that the stock market will be affected by the change and delete the zeros. The stock is still selling dinar, currently equal to a thousand shares, while will become one new dinar after the deletion of zeros equals 000, which could confuse the stock market basically confused movement due to the security situation in the country.

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lonelyintexas wrote:Just trying to make sure I understand this correctly, if a person had 1,000,000 shares of a bank stock at 1.00 dinar a share now, after the 000's are removed from the exchange rate how many share would you have and how much would it be worth, assuming a 3 to 1 revalue as this thread discusses.
Thanks
LIT 

1) Would you keep the same number of shares and the value go to say 300 fils in value.
or
2) Would you lose down to 1000 shares at a 1.0 dinar or 3.00 US.

either way the set value of your portion of the company remains the same. Yet I would expect for the shares to be reapportioned to reflect the exchange rate. So option 2 is the likely outcome.

Then that would mean you have more shares but at the end of the total, are the same value worth. The gain then would be in shares at a lesser value per but over all have the potential to gai9n more over time per to the total held, I got it, just never been to much of a stock guy as I like the hard currency holding period... ;)

No I think you're misunderstanding,

You're not gaining shares over what one might now control rather you might wind up with like LIT points out less shares of greater value individually yet collectively equal to the value of the previous bloc of shares under control.

Can you even imagine the chaos of an explosion in quantity in the aggregate of low priced fil shares? How much more can one expect them to dilute the share prices? You would be required to trade in huge blocs of stock like asia and they only do that because of the extreme low base value of their currencies.

Not going to happen that way. LIT's second option is the right conclusion.

Cool, never was interested in this anyways so I leave it to you guys that know... ;)