Thread: My Turn With My Source. {Friend}

ok am i understanding this to mean that our reval will start out at .31 instead of 1.21 or higher.thats fine by me,not complaining at all!!!
thanks neno!!
Sarah!!

yes , But when?

Originally Posted by costar01

yes , But when?

The sooner the better as far as I am concerned. Today, tomorrow, yesterday let's just get it done so we can all sit back and relax for a few days.

eastman

the next couple of days should be interesting to watch!!So lets be watching the cbi auctions,i say bt the end of this month,could be wrong,just my opinion!
Sarah

Originally Posted by stargate-sg13

The Saudi Riyal is $3.74 to the dollar. I know someone explained how they figure their currency using FILS I think. But anyway if you look it up on a currency converter you'll see what I mean.

And thanks for the info!!!!

JK

I think you may have your figures backwards here is the Riyal exchange rate:

Printed from the XE Universal Currency Converter at: XE.com - Universal Currency Converter

Saudi Arabia Riyals
1 SAR = 0.266712 USD

GCC inflation to remain high: Report





Bahrain Tribune - 20/01/2007


(MENAFN - Bahrain Tribune) Despite rising inflation and strong growth in the GCC both fiscal and monetary policy are set to become more expansionary, Deutsche Bank has said in its global markets research for emerging markets. Inflation is therefore likely to remain at historically high levels putting the spotlight on the limitations of a US-led monetary policy and possibly a common currency. The decision to adopt a common currency will nevertheless remain a political one. The report, titled 'GCC: moving towards a common currency', said that the GCC economy with an estimated total size of $730 billion in 2006, a current account surplus on a par with China at $230 billion, around 40 per cent of the world's proved oil reserves and 23 per cent of gas reserves, have made this region a significant economic power.
The GCC plans to adopt a common currency by 2010 with Oman joining later. A common currency will require structural, monetary and fiscal convergence for the union to be successful. Structural and monetary convergence is already well-advanced reflecting shared energy dependencies and 20-year de facto pegs against the US dollar. Fiscal convergence is, however, low and will become more difficult as differing oil resources across countries will lead GCC countries to structurally diverge over time. Moreover, there is also no appropriate anchor to ensure sustainable fiscal convergence.
The benefits from a Gulf currency union are currently low with intra-regional exports only around five per cent and limited near-term scope for increasing trade integration. The costs are, however, also low with monetary sovereignty effectively surrendered some time ago.
The key issue in adopting a common currency is surrendering the option to realign national currencies in the future. The report finds scope for fx appreciation with current undervaluation estimated at 10-15 per cent for the BHD and AED and 25-30 per cent for the OMA and SAR. We estimate both the KWD and QAT to be around fair value although the Kuwaiti authorities could well opt for further appreciation.
Despite the increasing uncertainties about the timing of a GCC common currency it seems very likely that the nominal exchange rates will remain tied to the US dollar for the coming years and, as such, interest rates will continue to closely follow those in the US.
The currency pegs against the US dollar have, in general, been successful in keeping inflation under the control in the GCC. Average GCC inflation was just 1.9 per cent during 1980-2006 on a PPP-weighted basis and just 2.4 per cent using a simple average.
Higher inflation across the region partly reflects the increased liquidity (and money growth) associated with increased oil prices. Problems have, however, started to appear in an increasing number of countries with GCC inflation reaching a (projected) multi-year high at 5.1 per cent in 2006 (simple average).


The reason I posted was to let you know that if all goes as plan the Saudi's could reval at 25% to 30% above the current $.27.

Originally Posted by neno

I got my call Gang. I have a few lines to share. I am excited so I hope I explain this very Well.

To start with, my freind tells me we will see the exchange rate start to move again like before. He says that the street rate is already 23 below todays 1278. Should move 11 here and 12 there and carry on from there over the next couple days.

I spent some more time with him on the June07 talk we shared before. He is still gunned on the security & stabillity control. If this all goes well, we will, break the .30 mark. I talked about the Norm that we somuch discuss here and there. You all know, like 1.20 - 3.22 He explained to me that that is very possible, but not now. He is right on target with OSW when it comes to the "Norm" that Shababi talks about to be the pre-invassion exchange rate of .33

Did he mean 0.33 dinars/1 USD (3.03 USD/1 dinar) or 0.33 USD/1 dinar?

Originally Posted by eastman

The sooner the better as far as I am concerned. Today, tomorrow, yesterday let's just get it done so we can all sit back and relax for a few days.

eastman

I'll need a month on the beach to decompress after this ride.

Originally Posted by Dinar Cha Ching

I'll need a month on the beach to decompress after this ride.

No beach for me, I have seen enough sand to last me for a few years after I got out of here. Maybe a cool mountain lake or a nice meadow somewhere.

eastman

Quote:
Originally Posted by neno
I got my call Gang. I have a few lines to share. I am excited so I hope I explain this very Well.

To start with, my freind tells me we will see the exchange rate start to move again like before. He says that the street rate is already 23 below todays 1278. Should move 11 here and 12 there and carry on from there over the next couple days.

I spent some more time with him on the June07 talk we shared before. He is still gunned on the security & stabillity control. If this all goes well, we will, break the .30 mark. I talked about the Norm that we somuch discuss here and there. You all know, like 1.20 - 3.22 He explained to me that that is very possible, but not now. He is right on target with OSW when it comes to the "Norm" that Shababi talks about to be the pre-invassion exchange rate of .33

Originally Posted by bultn

Did he mean 0.33 dinars/1 USD (3.03 USD/1 dinar) or 0.33 USD/1 dinar?

Thanks for the info Neno.... question..... are you saying it will keep moving until June 07 and then peg at around .30 us or are you saying it will start moving and reach .30 US by end of March or April 07?

thanks,

worf