Gulf to revalue currencies by April

[versusceo]

Gulf Arab oil producers could revalue their currencies together if the US dollar weakens further, with appreciations of 8% in the UAE dirham and Saudi riyal likely before April, Standard Chartered said on Wednesday.

Markets piled pressure on Gulf currencies last year as speculation mounted that more GCC countries would follow Kuwait and abandon links to the weak dollar partly to curb imported inflation. Kuwait ditched the peg in May.

"It seems likely that GCC countries will maintain their dollar pegs," Standard Chartered said in a note on Wednesday. "However, if we see further dollar weakness against the majors a coordinated revaluation by the GCC is possible," it said.

http://www.arabianbusiness.com/50838...by-april?ln=en

[heres-hoping]

Well if this report has any truth to it and we see GCC revalue its currencies by April 2008, then could that also mean a big possibility of us getting our RV too (if not before as by means anytime from now until that time)? Aren't the GCC waiting on Iraq to revalue before they all do?

[REITman]

Aren't the GCC waiting on Iraq to revalue before they all do?

Somebody recently posted that they were waiting on Iraq and Baghdaddy maintains that Iraq is waiting for the GCC. Flip a coin.

[ForeverInBlueJeans]

Somebody recently posted that they were waiting on Iraq and Baghdaddy maintains that Iraq is waiting for the GCC. Flip a coin.

Yes....I remember Baghdaddy stating that we should watch the other Gulf countries RV and Iraq would follow. I would be interested to hear Baghdaddy's take on this.

[teddysalad]

Gulf Arab oil producers COULDrevalue their currencies together if the US dollar weakens further, with appreciations of 8% in the UAE dirham and Saudi riyal likely before April, Standard Chartered said on Wednesday.

Markets piled pressure on Gulf currencies last year as speculation mounted that more GCC countries would follow Kuwait and abandon links to the weak dollar partly to curb imported inflation. Kuwait ditched the peg in May.

"It seems likely that GCC countries will maintain their dollar pegs," Standard Chartered said in a note on Wednesday. "However, if we see further dollar weakness against the majors a coordinated revaluation by the GCC is possible," it said.

http://www.arabianbusiness.com/50838...by-april?ln=en

Could, Would, Should?

[panhead]

Yes....I remember Baghdaddy stating that we should watch the other Gulf countries RV and Iraq would follow. I would be interested to hear Baghdaddy's take on this.

Since the GOI has proven they can't follow worth a carp, perhaps they ought try leading for once.

[versusceo]

http://www.arabianbusiness.com/50838...by-april?ln=en

from link...

The bank said it expected GCC revaluation expectations to pick-up ahead of the US Federal Reserve meeting on January 30.

the end of january is looking busy...

[DarkRing]

Its in Black and White.....this may be it.......Keep my fingers cross for this.

[crabman]

lol just watching the paint on my walls drying is about the same as this...

[ETA]

betting on a dinar' being worth more then a americian dollar. THERE'S A NO BRIANER , ITS JUST A MATTER OF HOW LONG AND HOW MUCH

[INRI]

betting on a dinar' being worth more then a americian dollar. THERE'S A NO BRIANER , ITS JUST A MATTER OF HOW LONG AND HOW MUCH

So far were just about going on 4 years....

[ETA]

As Soon As We Have A Winner .in The Control ,an Investment Of Oil . Big Oil.; Or Iraqi Nationalism

[snowman1]

so ,after 4 years of this,how far has this come for you?I've been in it for just a short time,and for me ,things look like it can only get better,unless there is a complete meltdown.IMO

[The Baghdaddy]

This is encouraging news. I think it was never a question of IF but WHEN! As I said before I was told that once the GCC countries revalued then Iraq would have to do something or choose to do something in the right direction sometime after.
Hope he was right.
The percentage I was told is almost the same as has been discussed here as well.
I wouldn't be too surprised if they do it sooner though. The amount of speculation that will be ploughing into these countries (NOT IRAQ) will be massive. If you had £100 million and you invested it in Dirhams which is a very safe currency to buy. You would get a return of £8,000,000 in a month or two that would seem like an easy no brainer to me. The currency isnt gonna devalue any time soon is it?
Thats why when I always say that big investors will not jump on the Iraqi currency until it hits close to 1-1 please understand what I'm getting at. If you all had 100 million to put in, to get a return of 8 in a couple of months investing in a currency that is extremely stable what would you do? Big investors always like as close to a sure thing as they can get. You wont see them putting in a 100 million if they thought it was gonna go backwards 8% Im sure!
Bet they revalue sooner, or issue a disclaimer trying to deter speculation. However it is inevitable that a REVAL will happen in my opinion.
Once they do, I cannot see Iraq sitting on a rate of 1214 either for long!
ITS AN UNREALISTIC ARTIFICIAL VALUE AS IT IS.
Following the GCC would be a smart move and show the world and Iraq that it is moving in the right direction.

[Uno]

IMHO, the big spenders are in now.
They are like us, they spent 10-100K depending on thier comfort level, and that's it for now.

The difference is when it hits once, they will roll it over...and then probably add some to it.
Why? because they can afford to.
We can't.
When this hits, I'll pull most of it out and retire.
They are already retired.

At least, that's what I'd do if I were one of them.

[The Baghdaddy]

IMHO, the big spenders are in now.
They are like us, they spent 10-100K depending on thier comfort level, and that's it for now.

The difference is when it hits once, they will roll it over...and then probably add some to it.
Why? because they can afford to.
We can't.
When this hits, I'll pull most of it out and retire.
They are already retired.

At least, that's what I'd do if I were one of them.

I disagree. They are investors. We are gamblers, we have bet on the long shot getting in at such an early stage as we have. An investor gets in at 1-1 with a fairly safe reasoning it will return him three times his investment and he wont lose. He will invest millions we gamble thousands.
Im not trying to put anyone on here including myself down but thats what we are really.
I have tried telling people this for a while now you can believe me or not it is only an educated guesstimate on my part and I could be wrong, of course Im sure I aren't lol ...........

[Uno]

I disagree. They are investors. We are gamblers, we have bet on the long shot getting in at such an early stage as we have. An investor gets in at 1-1 with a fairly safe reasoning it will return him three times his investment and he wont lose. He will invest millions we gamble thousands.
Im not trying to put anyone on here including myself down but thats what we are really.
I have tried telling people this for a while now you can believe me or not it is only an educated guesstimate on my part and I could be wrong, of course Im sure I aren't lol ...........

Missed my point...
Big guys are in this now...but they are not in it BIG YET!
They will get BIGGER once it hits the FIRST TIME.

[The Baghdaddy]

Missed my point...
Big guys are in this now...but they are not in it BIG YET!
They will get BIGGER once it hits the FIRST TIME.

I hear you but seriously why on earth would they bother????

[Uno]

Because people who have money don't keep it unless they make more.
If it works, they make a huge return, if not then they don't lose much.
Also, if it hits, it's a cool bragging right at the country club to say "I took $1K and made a million!"
There are multitude of reasons.
I can't name them all because I'm not a rich guy...but hopefully you get my point.

[The Baghdaddy]

Missed my point...
Big guys are in this now...but they are not in it BIG YET!
They will get BIGGER once it hits the FIRST TIME.

When we talk about countries detering speculators as I did in my first post, we aren't talking about people with $100,000 in that will ruin the economy, we are talking about speculators with $100's of millions in a currency, thats what I'm saying.
Thats what countries are scared of, not a group of people with a hundred or so grand down. But other countries with massive amounts of their currency that can potentially damage their economy. As I said Im not trying to degrade anyone, least of all the good people of this forum by calling us gamblers, Im just trying to put the speculator angle in perspective.
Hope you see what Im getting at.