Translation / Baghdadiya News / .. According to the Associated Press that the Iraqi market for securities has said that one of the largest telecom operators in Iraq will present its shares for trading at the beginning of next year, where will this flotation of shares is the first of its kind in the country since the fall of the former regime in 2003. - Article & Link Below
TLAR: I think this may be good news o Dr. Nan. This is a company home based in Qatar not in Iraq. I believe that this could mean that the stock market could be going international in January or at least Asia Cell may believe it. The ISX is not traded anywhere but Iraq.
The reason is there is no easy conversion of currencies. To be a real international market, your home country has to have a convertable currency. Although Asia Cell may have decided to list with this market, the question has to asked, why? This sounds almost like an IPO.
Or Asia Cell is trying to raise capital for expansion. Again the question must be asked. Why? There are plenty of stock exchanges they could list with that are international markets. Investors in Iraq have dinar.
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TLAR CONTINUES: The market is listed in and traded in dinar. The dinar is an unusable commodity anywhere but Iraq and of course the country sponsor counterfeiters, Iran. But even in Iran they just sell it back to Iraq for hard currency (USD). So it still remains in my mind.
Why the ISX and what are they going to do with all the non- trad able dinars they will get from this venture. Dinars are not used for exchange in Qatar anymore than they are used in the US so unless Asia Cell has found an easy way to convert dinar to a usable exchange asset, I ask why Iraq and why January? Could Asia Cell know something we can only guess at?
SCALP: Sounds like the ISX is going global jan 3 2013......interesting timing wouldn't one say ;) The more I look at this article the more huge it becomes....first time since former regime in 2003. Loving these little clues the last 2 days, making me feel a bit excited....yes i know, i should know better :P
MAXGIRL: Yes, but if this is true and this is a big "IF" doesn't the dinar need significant vaue (ie. 1 to 1) that could only happen with a managed float?
TLAR: Maxgirl, the value of the dinar is not at issue here. Only whether or not it is convertible which means international which means tradable. If you buy into their ISX using USD, you would like your investment stated in USD or dinars but when you sell a stock or close your account, most likely you will want USD back. If you live in England, you expect Euros. It is converted at the existing exchange rate at the time you sell no matter whether it's a dollar or a penny.
KAPERONI: Though this is a positive sign, Iraq has been working for months on "custodial banking" to support the ISX. I am not sure if a convertible currency is a requirement under this program.
HANDOVERFIST: Assuming investors around the world buy shares in Asia cell, what will they receive when they decide to sell their shares? Worthless dinar? I would think that if I invest dollars, I would get more dollars back when I sell.
KAPERONI: Handoverfist,I got this from a custodial bank site...
A custodian bank is a financial institution that is responsible for holding and keeping safe the various assets of an investment company. The assets can include any type of security, including stocks or bonds, as well as assets like jewelry or other valuables. Banks of this type provide services to investors, as well as angel investor groups, and even individual investors.
Sometimes referred to simply as a custodian, the basic responsibility of the custodian bank is to receive and keep safe the assets delivered by the investor. This includes stocks as well as bonds. The bank always maintains the ability to grant access to those assets to the investor, as well as render an accounting of the current status of those assets, in terms of their value.
Along with safekeeping of the assets, a custodian bank also assists in the purchase and sale of assets on behalf of the investor. This can include making sure that any purchased assets are properly received, logged, and accounted for under the terms of the investor’s account. At the same time, the custodian bank is instrumental in the orderly transfer of an asset to the new owner when the investor chooses to sell securities or one of the other types of assets that are entrusted to the bank.
My point is, if this is the direction Iraq is going for the ISX - funneling transactions through a custodial bank, I do not think we can say will certainty that Iraq must make the dinar international convertible or tradable before 1/1/2012 until we know more. But I am optimistic.
TLAR: Kap, we have custodial banks here in the US. They are not necessarily banks of foreign currency exchange. Only if the custodial bank has this as one of its departments are they able to swap from one currency to another.
Some banks here in the US also are regular banks that are foreign currency exchange banks but don't sell foreign currency to their depositors. They are foreign currency banks only because they do business out of the country and need this service in house to swap back and forth between currencies with overseas banks.
The golden rule between most of these types of banks is convertible currency, meaning international. I can't think of any bank outside of Iraq that would be interested in swapping for dinar lets say for Euros other than just the sale of dinar itself. Certainly dinars are unusable for commodities.
So until I see some mechanism that is publicly announced I don't believe any foreign investor will enter the ISX in any great numbers. This retards the potential market for Asia Cell. My question still remains, with all the problems and obstacles, why Iraq?
ARTICLE & LINK:
Translation / Baghdadiya News / .. According to the Associated Press that the Iraqi market for securities has said that one of the largest telecom operators in Iraq will present its shares for trading at the beginning of next year, where will this flotation of shares is the first of its kind in the country since the fall of the former regime in 2003.
He said the Iraqi market for securities in a statement that the quarter of the shares will be traded company AsiaCell openly starting from the third of the month of January and until the third month of February next when the stock price was determined in the twenty-fifth of December, the current. The ACL, which is a subsidiary of Qatar Telecom and one of the three mobile phone companies in Iraq along with Kuwaiti Zain Iraq and Cork, a subsidiary of France Telecom. Finished / 21 Monday, December 3, 2012 13:39