March 24, 2012
Much debate over the value of the stock after delete zeros
Baghdad, Financial sources revealed that the controversy began to escalate since 2008until now about the value of stock prices in Iraq market for securities that have faced violent strikes during the past decades, it will be the largest strike in the event of devaluation one Fils arrow depending on the layout of the Central Bank of Iraq.
At a time when the Central Bank as decided on 1/1/2013 date formally to start the flow of new Iraqi dinar after deleting three zeros to cash transactions in Iraq, decided last calculated value price per share in circulation as of the same date a penny instead of the current price is one dinar, and this is what several economists big problem which the Iraqi stock market will suffer.
And managed agency/news/may obtain documents confirming that the Central Bank ended the replacement plan and a date beginning next year to start trading the new dinar which would add to delete three zeros, the process of printing new categories is 50, 100 and 250 dinars and the latter category is equal to a quarter of a million current currency these would be top class to facilitate large transactions to categories currently circulating added after five dinars and trshikha a class 10 and 25 dinar banknotes, these categories are either metallic 50 and 100 F 250 and 500 Fils addendum to the dinar, which would also metal.
With regard to the prices of stocks and bonds according to the Central Bank, finding appropriate treatment of the value of shares traded in the Iraq market for securities in particular and the value per share is one dinar, would be if you delete zeros penny, in this area, the Bank proposed the formation of a Committee chaired by a representative of the World Bank and each organelle from the Ministry of finance and the Ministry of Justice and the Office of financial supervision and the Iraq market for securities to select accounting procedures for crisis in case of currency substitution and delete the three zeros in time Before doing a replace operation, the idea may be calculated per 1,000 shares new dinars, and issued one share for each 1000 old arrow allowance from the date of issuance of the new currency, or any ideas reach the Committee above.
Economist Dr. Majed mock, between agency/may news/what information the Central Bank currency instrument will begin small 50 Fils ascending, here dealing in Fils as a result large developments in inflation has become non-existent, proposed ten printing was Fellous escalation but the Bank insisted on printing 50 Fils escalation.
With regard to the stock between shareholders and mock that accounts and securities and all the problems that may arise as a result of the deletion of zeros must constitute joint committees of stakeholders and the private sector to resolve these issues and collecting proposals, including some permits maintaining one dinar stock price but the actual value would be Fils, the problem is Iraqi currency depreciation and stock was priced so Denard in the 1980s and then the dinar equal to $ 3, strange was maintaining its previous value and here The issue was complex and required an immediate decision may cause substantial losses to shareholders and also has earned, and here the solution however, decision-makers, although the problem raised since 2008 and have remained so far, but there are solutions but solutions are not agreed.
Large groups and on top is a new 250 dinars, it will reduce the amount of currency in circulation, especially for bigger deals and instead of carrying large quantities of a deal one is carrying several sheets of paper from the new, or because it is equal to one quarter of a million dinars from the current monetary.
And on the Bank endeavours to increase the value of the dinar, yes there are many proposals and draft deleted this proposal any included zeros until dinar value equation $ 1 will be replaced, but there are many issues concerning such as oil prices and adjustments that must be brought to an end the prices in neighboring countries, the issue is true dinar value internally and externally any purchasing power and, in the case of required force equation of Exchange can be bots in this direction, either purchasing value will be high cannot be equated.
And on the new shares value between the Executive Director of the Association of banks in Iraq Abdul Aziz European goldfinch "that the solution lies not in reducing the value of the arrow, but that mechanism will be as follows now value arrow one dinar, and here the whole capital will be arranged, for example capital 100 million, spread over the contributor, who owns 10,000 shares will become the owner of one hundred shares and thus".
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