"Undervalued" & "Overvalued" is the term that is often used. And also the line "Common currency doesnt seem a possibility as other nation/nations are not cooperating"
This they said before the merger of
1. East Germany and West Germany Currency
2. Unification of Europe to Euro.
You definately hear the term "common currency less likely" and then suddenly ta-da everybody agrees to it?
Mark my words Gulf will have a common currency, which will be followed by the Common Asian Currency and the Common African Currency.
We are moving towards a common Single World Currency one step at a time. We already have a Proxy World Money Trader (Visa, MasterCard and a few more).
Today Visa & Mastercard have more control over your money than you possibly could.
Take your money in QAR, if it does not unpeg, you will get the 3.64+/- per $$$. It it does unpeg, you will get more $$$ for the same number of QAR. Not much way to lose as a USA person, you can only gain with an unpeg.
Other counties are getting killed with the weak $$$ at this time. I am keeping extra QAR in Qatar, betting they will unpeg this summer and my extra QAR will go up 20%+/-. Earning 5.99 % in a QAR saving account which is better than the USA saving rate so it looks like a no-brainer. I can move them when I see what is happening.
syamsat - you might have it backwards. if you are getting paid in USD and they change the peg, a USD will certainly be worth less QAR than it currently is. You are right in saying there will be more QAR per dollar, but if you are being paid in USD, that means that things will get more expensive for you.
cruveck - interesting indeed. i would guess your company suspects change is coming, like many of us. as to when that change occurs, they are guessing like the rest of us. but usually companies like to play these things safe so it's interesting that they are hedging their bets this early. the only reason i can think of for them doing this is to pre-emptively stop people from looking for other jobs because they think their purchasing power will be reduced with the new peg.
___________________________________________
"Even a stopped clock gives the right time twice a day." Withnail & I
What made me post this thread is that, the company i signed my contact is traditionaly using USD.
But now suddenly, there is a circular giving option to everyone to convert the salary to the respective local currency. This was done at a corporate level for all GCC Countries.
Now why would a US based company do this? Some changes coming soon perhaps?
When my wife and daughter went to Canada this last summer, it was the firs time in 30 odd years our dollar surpassed the Us dollar.....dam near killed me LOL
Stay safe.
Perfection does not exist. The question therefore, is: what level of imperfection are we willing to settle for?
let me clarify... i don't think they will let it float. they will peg to a basket, like Kuwait.
i think the government can afford this inflationary pressure, but many private companies can not in the long run (at least the small to medium ones). it's really affecting where i work, and we're having a hard time recruiting expats because of it.
Kuwait didn't wait for a common currency, and recent talk our of the UAE makes me wonder if they will wait.
i hope they repeg to a basket - i'm paid in QAR and am longer for the good old days of a canadian dollar worth 63 US cents.
___________________________________________
"Even a stopped clock gives the right time twice a day." Withnail & I
In normal economies you are 100% correct, but with Qatar's surplus, they can ride out the cycle till the dollar strengthens again with ease....I fear the US is putting too much pressure on the GCC countries that have it to maintain the peg....but it will be interesting to see.
My personal prediction: no depeg UNLESS you get a commom GCC currency....then it'll be set to a basket of currences....but that is looking less and less likely.
Stay safe all.
Perfection does not exist. The question therefore, is: what level of imperfection are we willing to settle for?
they will have to do it eventually, as the current situation can not be maintained in the long run. Approx 50% of imports come from the Euro zone so this peg is a big contributor to inflation.
the government will keep denying that they will unpeg soon and set dates far in the future to keep speculators at bay. i wouldn't expect it in the near future, but if the government says 2010 then i would say it will be before that.
___________________________________________
"Even a stopped clock gives the right time twice a day." Withnail & I
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One Gulf Currency...
It will definately come about.
"Undervalued" & "Overvalued" is the term that is often used. And also the line "Common currency doesnt seem a possibility as other nation/nations are not cooperating"
This they said before the merger of
1. East Germany and West Germany Currency
2. Unification of Europe to Euro.
You definately hear the term "common currency less likely" and then suddenly ta-da everybody agrees to it?
Mark my words Gulf will have a common currency, which will be followed by the Common Asian Currency and the Common African Currency.
We are moving towards a common Single World Currency one step at a time. We already have a Proxy World Money Trader (Visa, MasterCard and a few more).
Today Visa & Mastercard have more control over your money than you possibly could.
Rumour has it (from the bank) that Qatar will unpeg the dollar just when is not clear.
No more expert opinions on the matter?
Oh well...i guess this thread does not effect many people and their cost of living in Qatar. Or does it?
Take your money in QAR, if it does not unpeg, you will get the 3.64+/- per $$$. It it does unpeg, you will get more $$$ for the same number of QAR. Not much way to lose as a USA person, you can only gain with an unpeg.
Other counties are getting killed with the weak $$$ at this time. I am keeping extra QAR in Qatar, betting they will unpeg this summer and my extra QAR will go up 20%+/-. Earning 5.99 % in a QAR saving account which is better than the USA saving rate so it looks like a no-brainer. I can move them when I see what is happening.
syamsat - you might have it backwards. if you are getting paid in USD and they change the peg, a USD will certainly be worth less QAR than it currently is. You are right in saying there will be more QAR per dollar, but if you are being paid in USD, that means that things will get more expensive for you.
cruveck - interesting indeed. i would guess your company suspects change is coming, like many of us. as to when that change occurs, they are guessing like the rest of us. but usually companies like to play these things safe so it's interesting that they are hedging their bets this early. the only reason i can think of for them doing this is to pre-emptively stop people from looking for other jobs because they think their purchasing power will be reduced with the new peg.
___________________________________________
"Even a stopped clock gives the right time twice a day." Withnail & I
I get paied in USD. If they unpeg,there will be more riyals per dollar, so we can get more advantage in local currency. What do you say?
This topic is getting intresting!
What made me post this thread is that, the company i signed my contact is traditionaly using USD.
But now suddenly, there is a circular giving option to everyone to convert the salary to the respective local currency. This was done at a corporate level for all GCC Countries.
Now why would a US based company do this? Some changes coming soon perhaps?
When my wife and daughter went to Canada this last summer, it was the firs time in 30 odd years our dollar surpassed the Us dollar.....dam near killed me LOL
Stay safe.
Perfection does not exist. The question therefore, is: what level of imperfection are we willing to settle for?
let me clarify... i don't think they will let it float. they will peg to a basket, like Kuwait.
i think the government can afford this inflationary pressure, but many private companies can not in the long run (at least the small to medium ones). it's really affecting where i work, and we're having a hard time recruiting expats because of it.
Kuwait didn't wait for a common currency, and recent talk our of the UAE makes me wonder if they will wait.
i hope they repeg to a basket - i'm paid in QAR and am longer for the good old days of a canadian dollar worth 63 US cents.
___________________________________________
"Even a stopped clock gives the right time twice a day." Withnail & I
In normal economies you are 100% correct, but with Qatar's surplus, they can ride out the cycle till the dollar strengthens again with ease....I fear the US is putting too much pressure on the GCC countries that have it to maintain the peg....but it will be interesting to see.
My personal prediction: no depeg UNLESS you get a commom GCC currency....then it'll be set to a basket of currences....but that is looking less and less likely.
Stay safe all.
Perfection does not exist. The question therefore, is: what level of imperfection are we willing to settle for?
they will have to do it eventually, as the current situation can not be maintained in the long run. Approx 50% of imports come from the Euro zone so this peg is a big contributor to inflation.
the government will keep denying that they will unpeg soon and set dates far in the future to keep speculators at bay. i wouldn't expect it in the near future, but if the government says 2010 then i would say it will be before that.
___________________________________________
"Even a stopped clock gives the right time twice a day." Withnail & I