Kuwait Revalues Their Dinar.....What's Up!!

[wmawhite]

Just came across this.............does anybody have any idea if this affect the IQD???

Kuwait Revalues Their Dinar: 10/4/2010

Kuwait’s central bank began pegging its dinar to a basket of currencies on Sunday, dropping a dollar peg adopted in 2003 to prepare for monetary union in the world’s top oil exporting region, the state news agency reported.

Kuwait also revalued its dinar, allowing the currency to appreciate 0.37 percent against dollar after months of market pressure on the exchange rate.

The new rate set by the central bank was $0.28806 compared with $0.28914.

‘Kuwait has decided, starting from today, that the exchange rate of the Kuwaiti dinar is to be based on a basket of the main global currencies,’ Kuna news agency quoted central bank governor Sheikh Salem Abdul-Aziz al-Sabah as saying.

Meanwhile, five other members of the Gulf Cooperation Council (GCC) will likely not follow Kuwait in revaluing their currencies, the bloc’s secretary-general said.

“I don’t expect other member states to follow Kuwait’s revaluation move,” Abdul-Rahman al-Attiya told Reuters by telephone.

Oman’s central bank governor said Oman was still committed to keeping its currency pegged to the dollar.

“We are still committed to the dollar peg policy,” Hamood Sangour al-Zadjali told Reuters by telephone from Muscat.

“At the Central Bank of Oman we did not know about this,” Zadjali said. “There was a position by the leaders of all Gulf countries to remain pegged to the dollar and we have abided by that decision,” he said.

http://www.tradearabia.com/news/news…O&artid=124047

[Who_Dat_Gurl]

Just came across this.............does anybody have any idea if this affect the IQD???

Kuwait Revalues Their Dinar: 10/4/2010

Kuwait’s central bank began pegging its dinar to a basket of currencies on Sunday, dropping a dollar peg adopted in 2003 to prepare for monetary union in the world’s top oil exporting region, the state news agency reported.

Kuwait also revalued its dinar, allowing the currency to appreciate 0.37 percent against dollar after months of market pressure on the exchange rate.

The new rate set by the central bank was $0.28806 compared with $0.28914.

‘Kuwait has decided, starting from today, that the exchange rate of the Kuwaiti dinar is to be based on a basket of the main global currencies,’ Kuna news agency quoted central bank governor Sheikh Salem Abdul-Aziz al-Sabah as saying.

Meanwhile, five other members of the Gulf Cooperation Council (GCC) will likely not follow Kuwait in revaluing their currencies, the bloc’s secretary-general said.

“I don’t expect other member states to follow Kuwait’s revaluation move,” Abdul-Rahman al-Attiya told Reuters by telephone.

Oman’s central bank governor said Oman was still committed to keeping its currency pegged to the dollar.

“We are still committed to the dollar peg policy,” Hamood Sangour al-Zadjali told Reuters by telephone from Muscat.

“At the Central Bank of Oman we did not know about this,” Zadjali said. “There was a position by the leaders of all Gulf countries to remain pegged to the dollar and we have abided by that decision,” he said.

http://www.tradearabia.com/news/news…O&artid=124047

I do not believe Iraq is part of the Gulf Cooperation Council if that is what you were wondering. If someone know differently please provide info.

http://en.wikipedia.org/wiki/Arab_states_of_the_Persian_Gulf

[keepmwlknfny]

Wouldnt affect it at all....such a small adjustment it really doesnt change things much at all.....it wasent even half a percent of change......

[tampa1000]

I read somewhere a few months back that this would happend when the Dinar RV, i was expecting both to happen at the same time! Thanks for the post, GO R!!!!!!!!!!!!!

[Niko]

wma thanks for the post!

[dlbfilm]

Thanks for the update....

[frankc]

One more dissention away from the dollar. More and more countries want to depart from having the dollar used as the Worlds reserve currency. Several have already begun buying/selling oil without converting their currency into dollars. It will be a bad day when the US Dollar loses it's World reserve status.

[Traconesu02]

Thanks for the post wmawhite

[GoBabyGo]

Thanks for the post. Very interesting that Kuwait would RV, perhaps Iraq is next

[Congo]

I could not find the article with the original link provided in the post that started this thread. I did however find the article on another site but the date is Monday21/5/2007May, 2007, 07:54 AM Doha Time.

Monday21/5/2007May, 2007, 07:54 AM Doha Time

Rest of GCC not expected to follow Kuwait peg move

RIYADH: The five other members of the Gulf Co-operation Council (GCC) will likely not follow Kuwait in revaluing their currencies, the bloc’s secretary-general said yesterday.

Kuwait’s central bank began pegging its dinar to a basket of currencies on Sunday, dropping a dollar peg adopted in 2003 to prepare for monetary union in the world’s top oil exporting region, the state news agency reported.

“I don’t expect other member states to follow Kuwait’s revaluation move,” HE Abdul Rahman al-Attiyah said.

Saudi Arabia has no plans to change the riyal’s exchange rate, the central bank said on Sunday, after neighbouring Kuwait dropped its dollar peg and threw regional monetary union plans into disarray.

“In light of the change in the Kuwait dinar’s exchange rate, the bank reaffirms that there is no intention to change the exchange rate of the riyal,” it said in a statement sent to Reuters by governor Hamad Saud al-Sayyari’s office.

Following are some other reactions to the news:

Mazin Al-Nahedh, National Bank of Kuwait: “I think the central bank will make more moves. It’s just a matter of times. Inflation driven by non-dollar imports is a burning issue.”

Egyptian Trade & Industry Minister Rachid Rachid; “As countries diversify their trade, it does not make sense anymore to keep link to the dollar. This will happen more and more. Countries now have understood the weight of trade should be reflected in their currencies.”

Mustapha Nabli, World Bank chief economist for the Middle East and North Africa; “This is clearly a signal that they are going to use monetary policy as a way to combat inflation and the decline of the dollar … (This is a) normal adjustment, the question is whether it is enough or too little.

“It will probably take three to six months to judge the impact of the revaluation.”

Rasheed al-Maraj, Bahrain’s Central Bank Governor: “Our position is clear. There is no change.”

Umayya Toukan, Jordan’s Central Bank Governor: “I don’t think it will make much of a difference, it is such a small amount.”

Steve Brice, chief Middle East economist at Standard Chartered Bank in Dubai: “We were expecting a revaluation not a currency basket. A revaluation gets in the way less of monetary union.

“One of the criteria of the monetary union was a common monetary policy. Now of course we don’t have that. There is a lot of uncertainty in the market.

“We didn’t think the single currency was likely, at least by the 2010 deadline, and we are getting less convinced that it is going to happen at all. This move reduces even further the likelihood.”

Simon Williams, HSBC Bank Middle East:

“The speed of the switch to the basket has surprised some but the direction of change is in line with expectations. It’s been clear for some time that Kuwait wants a stronger dinar and a more flexible regime.

“I’d still be surprised if we see any Gulf countries changing the value of their currencies or the nature of their currency pegs in the near term. However, it is bound to add to the debate that we know is taking place in a number of the Gulf central banks over how they manage the value of their currencies.”

Hamood Sangour al-Zadjali, Oman Central Bank Governor

“We are still committed to the dollar peg policy. At the Central Bank of Oman we did not know about this. There was a position by the leaders of all Gulf countries to remain pegged to the dollar and we have abided by that decision.” – Reuters

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=150424&version=1&template_id=48&parent_id=28

_________________________________________________________________________________________________

Kuwaiti Dinar: 0.28292 to 1 USD on October 4, 2010

Kuwaiti Dinar: 0.2841 to 1 USD on October 3, 2010

http://www.oanda.com/currency/converter/

[TR8Man]

Thank you for this update

[fsavahge]

One more dissention away from the dollar. More and more countries want to depart from having the dollar used as the Worlds reserve currency. Several have already begun buying/selling oil without converting their currency into dollars. It will be a bad day when the US Dollar loses it's World reserve status.

Be ready, because that day is not too far away.

[Mongo]

One more dissention away from the dollar. More and more countries want to depart from having the dollar used as the Worlds reserve currency. Several have already begun buying/selling oil without converting their currency into dollars. It will be a bad day when the US Dollar loses it's World reserve status.

You hit the nail on the head Frank with a C.......Why do you think they took Saddam out for............he was going to dump the dollar for the euro, then the other Middle east countries would follow suit............ Petro dollars to petro Euro's... How do you stop that(make an example out of one country...........Iraq)

[uncs]

Iraq, Do you see how easy that was. your turn, your up next.

[neuman]

Something very strange is going on for them to produce the exact same article twice??? Not sure if I believe this..

[djgabrielie]

Haven't seen the change if it occurred. XE still showing the same rate since last week.

[Yogi-Donnie]

Wasn't a revalue of the Kuwait Dinar expected right before the Iraqi Dinar RV? Go RV, one more sign the time is right.

[cgbrown]

This thread is based on old information and should be closed.

[Sandrider]

Hi, I,m new here. Just joined today and I want to thank all of you for all the interesting and informative posts. Hubby and I have been waiting since 2005 for the RV. Maybe soon. Good luck to all and God bless all.

[BMWman]

You hit the nail on the head Frank with a C.......Why do you think they took Saddam out for............he was going to dump the dollar for the euro, then the other Middle east countries would follow suit............ Petro dollars to petro Euro's... How do you stop that(make an example out of one country...........Iraq)

Mongo,

Bingo!! You hit the other nail on the head! That is EXACTLY why 'we' invaded. As always, "follow the money" to find out why something occurred.

BMWman

[bowling4dinars]

Just came across this.............does anybody have any idea if this affect the IQD???

Kuwait Revalues Their Dinar: 10/4/2010

Kuwait’s central bank began pegging its dinar to a basket of currencies on Sunday, dropping a dollar peg adopted in 2003 to prepare for monetary union in the world’s top oil exporting region, the state news agency reported.

Kuwait also revalued its dinar, allowing the currency to appreciate 0.37 percent against dollar after months of market pressure on the exchange rate.

The new rate set by the central bank was $0.28806 compared with $0.28914.

‘Kuwait has decided, starting from today, that the exchange rate of the Kuwaiti dinar is to be based on a basket of the main global currencies,’ Kuna news agency quoted central bank governor Sheikh Salem Abdul-Aziz al-Sabah as saying.

Meanwhile, five other members of the Gulf Cooperation Council (GCC) will likely not follow Kuwait in revaluing their currencies, the bloc’s secretary-general said.

“I don’t expect other member states to follow Kuwait’s revaluation move,” Abdul-Rahman al-Attiya told Reuters by telephone.

Oman’s central bank governor said Oman was still committed to keeping its currency pegged to the dollar.

“We are still committed to the dollar peg policy,” Hamood Sangour al-Zadjali told Reuters by telephone from Muscat.

“At the Central Bank of Oman we did not know about this,” Zadjali said. “There was a position by the leaders of all Gulf countries to remain pegged to the dollar and we have abided by that decision,” he said.

http://www.tradearabia.com/news/news…O&artid=124047

Could this date actually be April 10 2010? Remember there dates are different from ours. Iraq 10/4/2010= U.S. 4/10/2010

[Pexring]

My biggest fear as that some other little ignored country will RV their currency and catch us all with our pants down. Is there any other countries with a possibility of an RV?

[dinariac]

If true, this is good news. If I can find the link, I'll post it. However, Kuwait stated that they would revalue their dinar prior to the IQD RV. This is a positive step in the right direction. So, it is now officially -

RRRRVVVVVVVVV T T T T T T T T I I I I I I I M M M M M M E E E E E E E

[toddjen]

Kuwait RV'd. 8 cents.... 3.44 to 3.52 on Forex.

[dinariac]

Kuwait RV'd. 8 cents.... 3.44 to 3.52 on Forex.

Then, we should expect an IQD RV from $3..00 to $3.50 since Kuwait stated they wanted their dinar worth more than the IQD. I feel that it must be awfully close to -

RRRRVVVVVVVVVVV T T T T T T T T T T I I I I I I I I I M M M M M M M M E E E E E E E E