The CEO of Dubai Multi Commodities, Ahmed bin Sulayem has stated that the Iraqi dinar has caught his attention because of the confirmation coming from the CBI that the zeros will be deleted from the Iraqi currency and that proposal was passed by the House of Minister. He has dabbed the matter as ‘unstable political action.’
DGCX and the products are looking forward to the new currency contracts and they are anticipating that it will be able to add more volume and value to the products and the brokers will have better trading.
He has added further that as the Russian Ruble is right now at the top at the stock exchange, it will be really lucky for the Iraqi dinar to attract the attention, but he has also pointed out it is to be very unlikely that such a currency will be included into the stock market in its very first month. In this specific question, Yuan China has also stated that this is a strong currency and represents a strong nation which cannot be excluded. Along with that, he has also pointed out the fact that China has got into the global market very recently. He opined that being the CEO of DMCC, he need to be sure about all the information the brokers and the members need for dealing with such a kind of currency. CEO of Borse Dubai Gold and Commodities, Mr. Gary Anderson has said that it is the goal of the companies to develop the trading of derivatives in the Middle East to a higher level and it is also true that 80% of the trading in the stock market belongs to the Middle East. He has stated that the stock market is taking up new strategies and new product launches in order to attract people from different sectors and geographical regions in the world. As of July 2012 the member of the stock market is 264, but it is his belief that the this new strategies will allows more diversity of the customer base and better trading in the stock market. General Manager of Bari Middle East Middle, Mr. Iskandar Najjar has stated that their company is expanding their reach to the stock market by expanding their investment products which are tradable at the stock market. It is his belief that their strategy will work and he has also stated that though the global market situation was pretty tough, the gold mining stocks experienced a rise of 172% and that is why he has no doubt about the good performance of DGCX and its products.
According to him the inclusion of certain new products like copper futures and the options of Indian Rupee, launch of first Academy of Derivatives trading in the Middle East and such things have expanded the trade and also the trading hours in Middle East.
According to the announcement of the Central Bank the draft concerning the deletion of the zeros will be passed by the House of Representatives and Ministers after the so called ‘political turmoil’ has blown itself out.
Mohammed Saleh, Deputy Governor of the bank has confirmed that the draft will indeed pass after the parties reach an agreement about the significance and importance of this draft in the economy of Iraq.
According to him, “such an important project like the deletion of the zeros will interest a lot of important people and will not be neglected at all.” He has pointed out that the upcoming phase of the draft will see the final decision forming.
Saleh has also stated that, “the point that is preventing the implementation of the project is the fear of some of the politicians that the timing of the project can have a negative effect on the economy of Iraq and also on the life in general. The bank thinks that such an opinion must be taken into account. That is why it has been waiting patiently for the right time to come.”
The calculated cost for this project of deleting the zeros will be 172 billion dinar according to the Iraqi Central Bank.
A private study on the subject has also pointed that, “total cost of deleting those zeros will be 172 billion dinars.”
According to the bank, their study has found out that factors like the role of copyright and freight and insurance to the Baghdad International Airport and the ratio between the highest and lowest price calculated from the various presentations made by different companies has been taken into account and after that the “cost for creating new currency amount for creating the mint coins will be 16 million dinar.”
The bank has added, “Factors like rent for the cargo, Fridays and other public holidays, overtime and such will cost around 15 million dinars.” Apart from that, there will be media campaign and the cost of different limits will also be quite a few million dollars. There is some further information, like the cost replacement process by the bank dating back to 15th October 2003, saw the expenses like printed wages and transferring the currency and the cost was 240 dinars and the wage for the minted coins was up to 16 million dinars. There is also the total cost of the rings of 13 million dinars.
In relation to all this information the bank has said that, there is a chance of forming a high committee of supervisors for looking after the monetary policies in Iraq.
Moreover, Mohammed Saleh the deputy governor of Iraqi Central Bank has told that the bank has suggested about the formation of a higher committee of experts and officials who are also part of the Ministry of Finance, Planning, Financial Inspection Office, the State Council and the Economic Committee of the House of Representatives and the Parliamentary Economic Commission and this committee will look after the economic condition of Iraq.
Saleh has pointed out that the sale of currency in Iraq is controlled by the central bank, but it does not have the authority to control the cash transactions if there is not government supervision. This kind of authority will provide new powers to the bank and allows certain kinds of actions and responsibilities in certain cases.
The bank, according to Saleh has approached the government for the formation of the committee by saying that the demand is already there but the study is still going on.