[Post 1 of 2……] Question: “How are changes to the Iraqi dinar going to affect the Iraq stock market?” 3 or 4 years ago there was a group of us invited to join a couple different people who were investing in the Iraqi Stock Exchange…When I first heard about this we were told that if we buy the stock now and when they reinstate the rate the value of the stock would really shoot up and we would have tons and tons of money…Iraqi Stock Exchange …the cost of the stock is in USD not the Iraqi dinar. That’s important…If the Iraqi dinar is re-denominated, that’s when they LOP off the zeros…it would not necessarily require any adjustments to the Iraq stock.
[Post 2 of 2] Re-denomination of a currency involves changing the face value of the currency by dropping zeros from the existing notes and issuing new currency at a lower nominal value… Therefore a re-denomination of the Iraqi dinar would not inherently necessitate adjustments to Iraq stocks…If Iraq increases the exchange rate of the Iraqi dinar…this is different. A re-denomination will have a slight effect, if at all, verses changing the exchange rate…increases the purchasing power for Iraqis… The stock is already priced in American dollars so no the increase in the exchange rate of the Iraqi dinar is not going to make everybody millionaires on the stock market…
