sivananthankandiah

Omitting zeros currency strategic project

We are not out of the managed float yet. My country pegged at 1USD to MYR3.8 in 1999. They unpegged the currency in about 2005. Our rate is now at 1USD to MYR3.43 (floating a few cents up or down). We don't have a large oil reserve or any stable income resource. So keeping the high difference makes good sense to attaract visitors and investors.

All these speculation are turning my head round and round. CBI recently made a simple statement that the 1USD=1069 IQD is fair value. They will open their currency to forex on an managed float. I feel this in good news. They are testing the open market waters. If the currency drops further it is controllered. If it strengthen's it is better. They can strengthen it either quickly to win the support of their people or slowly to reduce the maximum capital expenditure (you get waht i am saying), in either case they will be in control. Its their country and I don't want anything bad to happen to it. I have invested in their currency, after all. Since they have a large reserve of oil, they currency will not weaken, that is for sure. I come from a country that pegged its currency during the last asian financial crisis. And after a few years they opened to forex on a managed float. Our currency quickly picked up strenght. Off course, since it is mamanged float, my government controlled it. So I feel we just need to cross our fingers and hope and wish that the new iraqi government does what is best for its people and us us as well. -siva