Pimpy
You're going to see IMO a slight increase in the exchange rate, probably within the first quarter of this year...I still feel in my heart there might be some kind of change to the exchange rate the first quarter of this year. It's not going to be anything major but it is going to be an increase.
A lot of you are asking me...how does the deletion of the zeros affect the stocks over there in Iraq...I know we were told that the deletion of the zeros comes off the exchange rate, which is wrong. It actually comes off of their currency, their bank notes. It's called a redenomination...Since 2013 they've been talking about the deletion of the zeros off the currency. They put the zeros on when inflation is really high...Now that their inflation has been kept in check for quite a while they're talking about removing the zeros off the currency. No where in there does it say the exchange rate. It says the change does not affect the currency's value against other currencies. Instead it simplifies transactions and improves the economy's overall efficiency.
The ISX is the primary stock exchange in Iraq...the redenomination of the Iraqi dinar will not directly impact the ISX or the stocks traded on it. Stock prices are determined by market forces such as supply and demand...If there's any kind of effect on the Iraqi Stock Exchange it would be that people might panic a little bit...The prices are all done in US dollars. It's not in Iraqi dinars...so redenomination is not going to have any effect the value of the stocks on the stock exchange. If they change the exchange rate against other foreign currencies it will affect the stock prices...
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