Originally Posted by
Wm.Knowles
My take on this. When the currency was introduced in Oct. of '03, by Jan. '04 it was trading in Egypt under 1000 dinar to the dollar. The CBI decided that they didn't want wild fluxuations in the currency and "backed" it off to the very familiar level of around 1475. They under estimated the amount of time it would take to retire the debt (after all who would forgive debt with a rising currency?) and how long it would take to form a the GOI. They may also have under estimated how the economy would grow over the last three years. So now they sit. In a very awkward position. An extremely undervalued currency that needs a "bold adjust" for many reasons. And, do they have the currency reserves, oil money, gold, aggreements with other countries, IMF, world bank and expaning economy that they need in order to adjust the price of the dinar? Not to mention the KURDS are demanding this? We think as part of the reconcilliation with the Sunnis, they are demanding the currency RV, I think the answer is YES to all of the above. Any thoughts of these points? Thank You