One of my favorite things to do whenever I enter a new country (like Iran) is analyzed their currency situation, exchange rate and how these things affect their economy.
I’ve handled many inflated currencies -- such as the Indonesian RUPIAH and Vietnamese DONG — but here in Iran, the RIAL gets a lot more confusing than inflation.
Iran has 2 different systems to count their money. The first is RIALS (the official Iranian currency), and the second is TUMAN (which is like the Rial, without the last zero). As a traveler, you don’t know which price is listed unless you ask. $1 USD = 50,000 Rials and that same $1 dollar = 5,000 Tuman. Sound confusing? ... It is!
Moreover, the only way to get money in Iran as a tourist is by bringing lots of cash (USD or Euros is preferred) and then exchanging it for Iranian Rials when you arrive. The reason is because there are no ATMs in Iran that cater to foreign banks.
If you are as confused reading this as I am typing it out, then this video will explain the confusing world of the Iranian Rial a little better.
Just curious, did you know anything about this before I made this video? Please share your thoughts on this below! And special thanks to G Adventures for hosting me on this life changing trip!
Music: Epidemic Sound
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What's confusing about cutting a 0? In Romania in the early 2000' we changed currency by cutting 4 0's off the currency. For small sums of under 100 new RON people got the hang of it easy, but orally people still use the old currency for sums greater than 100 lei. For example if you ask someone to give you 50 milion he will give you 5000 RON...
Back in 2005 România switched from ROL to RON, and both currencies were in circulation for one year (or two?).... So they basically cut of 4 zeros from the banknotes. One dollar was 40000 ROL and changed to only 4 RON. And the confusion was started, but to make it even more difficult people were using values interchangeably and some shorthand notations as well.
Few weeks ago I was Iraq and there people were selling things to Iranis and they were like 5 toman 10 toman. Being Pakistani I was so thrilled that they are selling so cheap like less than 1 Pakistani rupee. But when I actually came to know that I am supposed to add 4 zeroes it was not a good feeling.
I think people make systems for money but sometime it get to complex to fully get it, so they try to cover up or find a best way to do it, which is pretty cool but it still doesn’t change the fact on how confusing things can be in the world and that follow for outsider places around the world.
Although foreigners may now invest in A-shares, there is a monthly 20 percent limit on repatriation of funds to foreign countries.
Performance of A-shares.
Since its inception in 1990, including a major reform in 2002, the index has seen great fluctuations. Overall, however, it has grown along with the Chinese economy. The years 2015 to 2016 were a particularly difficult period, with a 52-week performance of -21.55 percent as of July 20, 2016.
As China grows from an emerging market to an advanced economy, there is substantial demand for Chinese equity. Stock exchange regulators continue efforts to make A-shares more broadly available to foreign investors and have them recognized by the global investing community.
In June 2017, the MSCI Emerging Markets Index announced a long-awaited decision it would add stocks to its index. According to CNBC, MSCI will add 222 China A Large Cap stocks to its benchmark emerging markets index gradually beginning in 2018. The MSCI website reveals the stocks it will list include the Bank of China, China Merchants Bank, Guotai Junan, Ping An Insurance, according to a document on Tsingtao Brewery, SAIC Motor, Suning Commerce and Spring Airlines.
Current Dividend Preference.
Participating Preferred Stock.
Convertible Preferred Stock.
Cumulative preferred stock includes a provision that requires the company to pay preferred shareholders all dividends, including those that were omitted in the past, before the common shareholders are able to receive their dividend payments.
Non-cumulative preferred stock does not issue any omitted or unpaid dividends. If the company chooses not to pay dividends in any given year, the shareholders of the non-cumulative preferred stock have no right or power to claim such forgone dividends at any time in the future.
Participating preferred stock provides its shareholders with the right to be paid dividends in an amount equal to the generally specified rate of preferred dividends, plus an additional dividend based on a predetermined condition. This additional dividend is typically designed to be paid out only if the amount of dividends received by common shareholders is greater than a predetermined per-share amount. If the company is liquidated, participating preferred shareholders may also have the right to be paid back the purchasing price of the stock as well as a pro-rata share of remaining proceeds received by common shareholders.
Significance to Investors.