Saudi Currency

[stroyble]

If the conversion of the Saudi Riyal is only .26...Why would Iraq come out any higher. Saudi is established and has more oil.

Any Ideas about this? Just making an obs.

[rick25sandi]

SAUDI RIYALS are purposely kept at a low rate by the saudi government

[dinar-racer]

1.It's been proven that Saudis have been lying about their reserves.2 Imo once the iraquis get up and running I beleive that they will easily become number 1 in the oil world.Also you are comparing a Monarchy-----Keep the people poor---And a democracy..thats why I believe they will come out over .26 Just my opinion.

[GaryB]

Saudi is also a closed society, not an open for business/ capitalist type society. Iraq will far surpass Saudi in GDP over the coming yrs.

[Buckeye Pilot]

Saudi is also a closed society, not an open for business/ capitalist type society. Iraq will far surpass Saudi in GDP over the coming yrs.

Bingo..............

[pchester]

Saudi Govt. also pays everything for there people such as taxes,etc. Thats another reason there currency is lower.

[0722]

Saudi is also a closed society, not an open for business/ capitalist type society. Iraq will far surpass Saudi in GDP over the coming yrs.

Winner winner chicken dinner

[MrRich]

If you'll research the history of the currencies of Saudi Arabia and Iraq you will see that there was a considerable gap prior to the invasion of Kuwait 20 years ago. However I do think it's a possibility that the IQD will RV to a range near the Saudi Riyal, with the intention being to eventually reach parity with the USD.

[stroyble]

Thanks for your well thought out responses-I appreciate it!

[Midx1]

This has been the rate in KSA since 1993 that I have known of.

Also look at the rate in the UAE 1. USD equals 3.68 AED.

Been that way a long time also.

Kuwait, Bahrain all those rates go in the other direction,,but prices of items remain almost the same when you consider the conversion rate,maybe slightly higher but not by much.

What will Iraq come out with is any ones guess.

[jmw]

look at the amount of currency in circulation as well as their GDP

[MovieMaker]

Good Question, and good answers. I love this site, I've learned so much!

[wicked93gs]

Saudi Arabia is a prime example of why Iraq can never do a straight revalue at the ridiculous $3+ rate...as stated they are more developed and have more oil, the only way Iraq will come out with a higher rate is if they LOP it first...I much prefer .25 to a LOP myself.