Ugaili: raise zeros will not affect oil prices

Ugaili: raise zeros will not affect oil prices

December 24, 2014 17:26

MP Aziz Ugaili

Iraqi fields :: Ali al-Saadi

Confirmed to the Committee on Energy and Oil parliamentary member Aziz Ugaili that raise zeros from the Iraqi dinar will not affect the low oil prices, the fact that specific prices in US dollars.

Ugaili said in a press statement that the value of the Iraqi Oil prices are in dollars but the lifting of the zeroes will lead to an increase in commodity prices in the country.

Ugaili ruled that the lifting of the zeroes from the Iraqi currency will be in the coming period specifically in the next year in 2015

csd9013 wrote:

"lifting of the zeroes will lead to an increase in commodity prices "

Should we be excited about this? I'm afraid "lifting" will not change value.

wciappetta wrote:

well it won't affect the price of oil [you quoted a misprint, it was meant to say "Not"] since as the author says it's priced in dollars... for example if oil was fifty dollars a barrel and we revalue to to $3.50 oil still costs $50 a barrel or 58,200 ID after the revalue that barrel in ID would be less than 15 ID ... reflecting a major increase the  currency value, the point of the report though is the timing... I get excited about that...

mochasmom wrote:Yes indeed..we should be excited that they actually have a plan this time!

The arrival of most of the governors and heads of provincial councils to Basra to participate in the coordination meeting tomorrow

Sunday 28 December 2014

Besides the presence of governors and heads of councils Media announced the Basra Governorate Council director Ali Yusuf, the arrival of most of the governors and heads of the provincial governors except for the Kurdistan region, in addition to the Minister of State for Provincial Affairs, this evening to Basra, to attend the coordination meeting of the Iraqi provinces, which will be held on Monday. He said Ali Youssef told Radio tow, "Prime Minister Haider al-Abadi awaits his arrival with the delegation accompanying him tomorrow morning to Basra for chairing the meeting."

This has imposed tight security devices and procedures prevalent thick of the elements of security, particularly in the center of Basra and around Basra International Hotel (Sheraton) and the roads leading to the airport.

The government spokesman Sabri Saad said in a press statement that the prime minister Haider al-Abadi will chair the meeting on Monday, as part of government's efforts to develop a common vision and reach a consensus on the contexts of the provinces claims.

He pointed out that "the meeting will talk about the benefits of maintaining the petro-dollar exchange rate and the release of part of the funds allocated in this regard, will also be investing file trading and opened the doors for investors, according to the government's steps in the activation of economic resources."

Proven wrote:
Yes you should be excited.   This is a clear indication that the lifting of zeros is not a redenomination.  A redenomination would have no effect on commoditiy prices.  Lifting zeros (currency value) will give Iraqis more money, thus increase demand for goods and services which will lead to price increases. 

My belief is that the price increases will occur as a result of investors flooding the country and buying up all oil related assets.  This will force the central bank to increase the exchange rate to compensate (for price increases) and place Iraqis on equal footing.  Atleast this was the plan as previously explained by Shabbi. 

fonz1951 wrote:i'm excited,hoping,praying, but i aint gonna count my chickens just yet.