Thread: peg?

i am new at this what is the pegand what does it do

Originally Posted by sholmes21

i am new at this what is the pegand what does it do

A "peg" is slang for a "revalue" of the currency. Basically, it's when the money gods say that the currency is going up in value, due to improvements and confidence in Iraq's future--not to mention they have the world's second largest oil reserves and the the largest natural gas reserves. At any rate, the 'peg' could happen in the near future and we're all hoping (based on rumor) that it's in the $.91-1.19 USD range. Doing the math here, should cause you to smile.

The mere mention of the WORD Dinar makes me smile Whatever! LOL!

Originally Posted by sholmes21

i am new at this what is the pegand what does it do

Makes us rich!!!

Hm...Actually, I thought that "peg" and "revalue" meant two different things...
"Revalue" means to simply increase the worth of a currency.
A "peg" means to tie it to another currency...say the dinars pegs at 80 cents of a Euro. Then the dinars value will be exactly that, no matter how the Euro fluctuates. So in dollars, one dinar could be worth 90 cents one day, and then 1$ the next, depending on the value of the Euro versus the dollar.

So a "peg" doesn't necessarily mean a revaluation! COULD be a devaluation also. (Generally speaking, that is)

In practice, though, a peg of the dinar will most surely mean a revalue also!

/Karin

Ps. Correct me if I am wrong!

Originally Posted by karinc

Hm...Actually, I thought that "peg" and "revalue" meant two different things...
"Revalue" means to simply increase the worth of a currency.
A "peg" means to tie it to another currency...say the dinars pegs at 80 cents of a Euro. Then the dinars value will be exactly that, no matter how the Euro fluctuates. So in dollars, one dinar could be worth 90 cents one day, and then 1$ the next, depending on the value of the Euro versus the dollar.

So a "peg" doesn't necessarily mean a revaluation! COULD be a devaluation also. (Generally speaking, that is)

In practice, though, a peg of the dinar will most surely mean a revalue also!

/Karin



Ps. Correct me if I am wrong!

Hi K,

You are undoubtedly right, I'm pretty much a dinar newbie myself here, which is why I use economically technical terms like "money gods" in trying to explain how the dinar moves up the "value ladder" But like my granddaddy used to say, "You never learn less" and I thank you for clarifying....It's all good!!

thanks karen for that clarification.

does anybody know how long a peg lasts for generally before the currency floats again, or does it peg one day and then float(up?) from there....

cheers
G