DINARESGURUS.BLOGSPOT.COM__________________________

Wednesday, May 10, 2017

DINAR IRAQ & DONG VIETNAM UPDATE, 10 MAY

Currency Speculator is a person who is analyzing & speculating on a rate potential of a certain currency. Nearly all global currency values rise and lower in a continual ebb and flow dictated by the global economy. Generally speaking the values only rise and lower in the single digit percentages unless in rare cases a catastrophic event occurs such as war that may affect certain currency revalue (RV) by gradual growth RV or instant straight up RV up to 1000 times value or more. I fully utilizing the ultimate natural leverage that may just coexist once in entire lifetime.
I looks at different economies and speculate on potential outcome that will cause an upward trend in a given currency. Once make decision based on fundamental & technical studies, then simply exchange own currency for the currency speculating, build up own foreign currency exchange reserves and finally watch the forex market to measure appropriate time frame to sell it back.
*****
The Iraqi Stock Exchange said it currently includes 45 brokerage companies, indicating that it aspires to grant a license to open companies in the Iraqi provinces.
“There are 45 brokerage firms in the market, but we hope to license a brokerage firm in the Iraqi provinces,” Taha Ahmed Abdul Salam, chief executive of the market, said during discussions in the conference on applications and solutions of securities trading technology held for the second day in Beirut.
Abdul Salam said that “the market stopped for a while granting licenses to brokerage firms in Baghdad and is preparing to start its second phase, the Iraqi provinces, pointing out that besides the brokerage companies, there are currently 99 companies listed on the market and there is high level coordination between the Central Bank and the Securities Commission To complete the market requirements for listing a number of companies within the banking sector in the market.
“There are 17 companies offering to put their shares on the market and the Securities Commission approved 6 companies to be listed in the market and this is a positive indicator of the work of the market, which aspires to be a main supporter of the Iraqi economy in various sectors that participate effectively and drive in the market”.
******
Revaluation (Definition): A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency.
In a fixed exchange rate regime, only a decision by a country's government (i.e. central bank) can alter the official value of the currency.
Re-denomination has nothing to do with Re-valuation. When a currency is redenominated the central bank of that country will reissue notes at a decided ratio for both speculators and its citizens.
The old notes are given certain time period for exchange and then destroyed once they are returned to central bank. Note that, the purchasing power remains the same throughout the transaction except you are getting new notes for old notes.
Differences between Re-denomination & Re-valuation: For re-denomination, All the old notes must be replaced with new notes.
This is not needed for a re-valuation. Re-denomination does not change the net value (Purchasing Power) while Revaluation does that.
Bank should announce in advance for a decision of Re-denomination while banks will never announce in advance for Revaluation.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.