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Kuwait Drops The Dollar
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| Kuwait Drops The Dollar
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| Ass Boil |
Kuwait drops dollar peg in blow to Gulf currency union
AGENCIES[ MONDAY, MAY 21, 2007 01:06:36 AM]
KUWAIT: Kuwait unshackled its dinar from the tumbling US dollar on Sunday and switched the exchange rate mechanism to a basket of currencies, throwing plans for currency union with other Gulf Arab oil producers into disarray.
Kuwait’s central bank, which battled speculators for weeks to defend the peg, said the dollar’s slide against other currencies had forced it to break ranks with fellow Gulf states to contain inflation from the rising cost of some imports.
The move stunned Gulf currency markets and volumes dried up. The impact would be clearer on Monday when global markets open, said Steve Brice, chief Middle East economist at Standard Chartered Bank in Dubai. Oman and Bahrain, the two smallest Gulf economies, and Saudi Arabia, the largest Arab economy, said they planned to stand by their pegs.
There was no comment from the central bank of the United Arab Emirates, whose currency is likely to take centre stage on Monday as prospects for a single currency evaporate. Kuwait was still committed to monetary union, the central bank governor said, after changing the dinar’s rate to $0.228806, an appreciation of about 0.37%.
“The massive decline in the dollar’s exchange rate against main currencies... has contributed to the increase in local inflation rates and this step is part of the central bank’s efforts to curb inflationary pressure,” Sheikh Salem Abdul-Aziz al-Sabah said.
Kuwait was named as the top candidate for a revaluation in a poll of analysts in March and markets piled pressure on the dinar, betting that the central bank would allow an appreciation as the dollar slid to record low against the euro in April.
The decision to abandon a currency basket adopted in 2003 to prepare for monetary union, caught markets and fellow central bankers unawares. “At the Central Bank of Oman, we did not know about this,” the bank’s executive president Hamood Sangour al-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.” Oman cast the first doubts on the monetary union project last year when it said it would not meet the 2010 deadline. The project now appeared to be in even greater jeopardy, said Brice.
“One of the criteria of monetary union was a common monetary policy. Now, of course, we don’t have that,” he said. “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.”
Kuwait’s central bank governor said his country was still committed to monetary union and was only acting in the “national interest” to contain inflation. “Until the completion of all the requirements to achieve the currency union and the launch of the Gulf currency, the Central Bank of Kuwait will continue to adopt the basket system.” The statement did not say what currencies were in the basket.
“The basket would typically mean the euro, sterling, Swiss franc and the dollar,” said Mazin al-Nahedh, head of the treasury department at National Bank of Kuwait. In the past, the central bank did not disclose the composition of the basket, he said.
The Kuwait’s central bank has spent the past six weeks defending the dollar peg as it came under pressure in the run-up to an April central bankers meeting to try to revive the monetary union plan. The talks ended inconclusively.
The central bank warned markets against betting on a dinar appreciation and followed up by cutting key interest rates to make dinar-denominated assets less attractive. The last policy move, a 25-basis point reduction in the repurchase rate, was announced on May 13 after market pressure had subsided.
http://rawstory.com/showoutarticle....w%2F2063278.cms |
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| harley-davidson |
| More of that NCMORON " BOOM " as the U.S. dollar is becoming almost worthless. |
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| Ass Boil |
| NCMoron will attempt to tell us it doesn't matter how worthless the dollar becomes.... |
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| Billyfromsphily |
Well NCMORON06 is the financial voice of the SFN ! Who would ever doubt his predatory lending expertise and knowledge of international finance?
Dickface has only 17 months left! |
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| thoroldjames |
Bought $100 US a few days ago.
Cost me $110 Canadian.
Insanity. |
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| Luther |
| Kuwaitis be warned, Saddam Hussein did something similar, and shortly thereafter the United States overthrew his government and then executed him. |
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| Oz |
Quote: Originally posted by Luther
Kuwaitis be warned, Saddam Hussein did something similar, and shortly thereafter the United States overthrew his government and then executed him. |
What!? Are you telling me that Kuwait has WMDs, harbored terrorists, and needs some democracy!? |
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| Halcyon |
Quote: Originally posted by Oz
What!? Are you telling me that Kuwait has WMDs, harbored terrorists, and needs some democracy!? |
No, he's saying the Kuwaiti's hate our freedoms. That's why they need to be destroyed. |
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| Oz |
Quote: Originally posted by Halcyon
No, he's saying the Kuwaiti's hate our freedoms. That's why they need to be destroyed. |
well some Kuwaiti's hate our freedoms - the rest are out buying chocolates and flowers like French schoolgirls waiting for us to roll through town and drape a flag over some statues |
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| Monster_Zero |
| We gotta fight 'em over there!! |
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| Oz |
Quote: Originally posted by Monster_Zero
We gotta fight 'em over there!! |
that's another great reason! |
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| zimmie |
only "raw story" would see this as a big deal....
Linking it to the dollar came into effect on January 5, 2003 as part of Kuwait's commitment within a broader December 2001 agreement reached with the other five members of the Gulf Cooperation Council (GCC) to prepare for the adoption of a single GCC currency by 2010. All the other GCC members already adopt the dollar as an anchor for their currencies.
http://www.ameinfo.com/16604.html |
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| Oz |
Quote: Originally posted by zimmie
only "raw story" would see this as a big deal....
Linking it to the dollar came into effect on January 5, 2003 as part of Kuwait's commitment within a broader December 2001 agreement reached with the other five members of the Gulf Cooperation Council (GCC) to prepare for the adoption of a single GCC currency by 2010. All the other GCC members already adopt the dollar as an anchor for their currencies.
http://www.ameinfo.com/16604.html |
only "ameinfo.com" would say that |
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| Ass Boil |
Quote: Originally posted by zimmie
only "raw story" would see this as a big deal....
Linking it to the dollar came into effect on January 5, 2003 as part of Kuwait's commitment within a broader December 2001 agreement reached with the other five members of the Gulf Cooperation Council (GCC) to prepare for the adoption of a single GCC currency by 2010. All the other GCC members already adopt the dollar as an anchor for their currencies.
http://www.ameinfo.com/16604.html |
You're right, expert zimmie.... I'm sure they were going to drop the dollar regardless of how fucking shitty Bush made it....
There is nothing significant about one of our only allies in the middle east deciding our currency is so worthless they don't want to tie their currency to it.
nothing to see here, just look straight ahead.....
fucking retard. |
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| Crazytree |
the Chinese did something similar last year.
"a basket of currencies"... I love that mental picture. |
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| Stonewall |
The Arab World knows that they have no future with the U.S.. The UAE Ports Deal was very telling. The upcoming surrender in Iraq will make the U.S. move away from the region even more.
The Arab world is actually doing quite well as far as the future goes. Islam is on the march and defeat and retreat in the face of Islam virtually everywhere will be rewarded on many levels. In 100 years Europe will be Islamic. Who knows what shape the U.S. will be in? |
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| NCMike06 |
Quote: Originally posted by Luther
Kuwaitis be warned, Saddam Hussein did something similar, and shortly thereafter the United States overthrew his government and then executed him. |
And when it doesn't happen, what will you say then about your moonbat conspiracy theory?? |
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| NCMike06 |
Kuwait has only had its currency linked to the dollar since 2003, this will have little or no impact on the dollar. Not really a big deal.
I guess we can all wait for that invasion though... :rolleyes: :rolleyes:
Any of you Mrs. Cleo conspiracy theorists ready to set a date??? Its nice and easy to say you predicted it after the fact (as so many here do)..but lets put up some dates...if any of you have the balls that is. |
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| Ass Boil |
What a predictably perfect example of your stupidity.....
No one said it was going to "hurt" the dollar. Bush is doing a good enough job of that on his own. But it is an example of the lack of confidence the rest of the world has in the dollar. They only lasted 4 years tying their currency to ours.... |
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| NCMike06 |
Quote: Originally posted by Ass Boil
What a predictably perfect example of your stupidity.....
No one said it was going to "hurt" the dollar. Bush is doing a good enough job of that on his own. But it is an example of the lack of confidence the rest of the world has in the dollar. They only lasted 4 years tying their currency to ours.... |
SO when is the invasion of Kuwait??
And I guess they had no confidence in the dollar pre 2003, right? |
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| Crazytree |
Quote: Originally posted by NCMike06
Kuwait has only had its currency linked to the dollar since 2003, this will have little or no impact on the dollar. Not really a big deal. |
I see this topic was discussed on Rush Limbaugh today. |
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| Ass Boil |
Quote: Originally posted by NCMike06
SO when is the invasion of Kuwait??
And I guess they had no confidence in the dollar pre 2003, right? |
Good fucking god you are an idiot.
Quote:
Kuwait May Abandon Dollar Peg to Protect its Economy
By Will McSheehy
Jan. 24 (Bloomberg) -- Kuwait, the third-largest Arab oil producer, may abandon the dinar's peg against the dollar in favor of a basket of currencies to help minimize economic harm after the dollar declined.
``We might go to a basket for an interim period,'' Bader al- Humaidhi, Kuwait's finance minister, told reporters today at the World Economic Forum in Davos, Switzerland. ``The dollar fell a lot against the euro last year, but if we'd been linked to a basket we wouldn't have suffered'' as much.
Al-Humaidhi declined to comment on which currencies might be in the basket. A switch from the dollar is being studied by Kuwait's central bank, he said. The Kuwaiti dinar rose to 0.28915 against the dollar as of 4 p.m. in London, from 0.28920 yesterday, according to Bloomberg data.
Dollar reserves are being replaced with euros by oil producers including the United Arab Emirates and Venezuela. China, which has the world's largest foreign-exchange reserves, and Indonesia say they plan to increase euro reserves and Iran says it's boosting oil sales priced in euros.
The dollar has declined 5.2 percent against the euro in the past 12 months. The currency traded at $1.2955 against the euro at 12:47 p.m. in New York from $1.3026 yesterday, when it reached a two-week high of $1.3044.
Currencies Undervalued
Most of the currencies of the six Gulf Arab states, including Saudi Arabia and Kuwait, are undervalued against the dollar, based on their current-account balances, inflation and costs of goods and services, Deutsche Bank AG said in a report this month.
``Without the peg, Gulf currencies would have appreciated in the past couple of years because of the increase in oil prices,'' thus boosting the cost of imports, Standard Chartered Plc economist Monica Malik said in a telephone interview today from Dubai. ``Instead they weakened against other major currencies owing to the dollar.''
The six Gulf Arab states earned as much as $500 billion from oil sales last year, according to the International Monetary Fund. About two thirds of that amount is likely to be invested in overseas savings and investments in countries including the U.S.
The U.S. needs to attract about $2.5 billion a day from foreign investors to keep the dollar steady and fund a current- account deficit that widened to a record $225.6 billion in the third quarter of last year.
G-7 Urge Float
Kuwait in 2003 became the last of six Gulf Arab monarchies including Saudi Arabia to peg its currency to the dollar in readiness for a single currency planned for 2010.
The Kuwaiti dinar is trading at the top of a 3.5 percent permitted band set when the dollar peg was established in January 2003.
Kuwait central bank governor Sheikh Salem Abdul Aziz al- Sabah last month said he may decide to widen the range or change the peg if the U.S. currency continues to weaken and threatens domestic growth.
The Group of Seven industrial nations, including the U.S., Japan, Germany and the U.K., in April urged countries with current-account surpluses to allow their currencies to appreciate to help adjust global imbalances.
``I don't think other Gulf countries are going to adjust their pegs,'' Dorothee Gasser, a Middle East and Africa economist at ING Bank NV in London, said in a phone interview today. ``What we are likely to see is that they are going to convert some of their reserves into gold. It's bearish for the dollar.''
Single Currency
Crude oil futures in New York reached a record on July 14. They have since fallen because of rising stock piles in the U.S. and receding security concerns in oil producing nations. Oil at around $55 a barrel is still almost three times higher than five years ago.
Kuwait remains committed to a single currency for the Gulf states, al-Humaidhi said today. ``The 2010 target is still the same. I hope we can meet it,'' he said.
To contact the reporters on this story: Will McSheehy in Davos, Switzerland at wmcsheehy@bloomberg.net
Last Updated: January 24, 2007 12:52 EST
http://www.netscape.com/viewstory/2...BwfY&frame=true |
The sad part is you claim to work in the financial industry and you don't even understand this simple concept.
You are a living joke. |
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| NCMike06 |
Quote: Originally posted by Crazytree
I see this topic was discussed on Rush Limbaugh today. |
I wouldn't know, I didn't listen. And thanks for the talking point Twiggy...we can always count on you for that..
Better get back to studying up on the precedents for that big con law case you are on.... :rolleyes: :rolleyes: |
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| NCMike06 |
Quote: Originally posted by Ass Boil
Good fucking god you are an idiot.
The sad part is you claim to work in the financial industry and you don't even understand this simple concept.
You are a living joke. |
Right...
Lets see your record....a few posts earlier you said this:
| Quote: No one said it was going to "hurt" the dollar. |
Now its a travesty? Please.
Once again....its not a big deal, and the fact that you try to pretend to have even a little understanding of it is betrayed by the fact that you are now claiming it will be....
Ohh, and what is the Kuwait invasion date?? |
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| Ass Boil |
Quote: Originally posted by NCMike06
Right...
Lets see your record....a few posts earlier you said this:
Now its a travesty? Please.
Once again....its not a big deal, and the fact that you try to pretend to have even a little understanding of it is betrayed by the fact that you are now claiming it will be....
Ohh, and what is the Kuwait invasion date?? |
My god. You are even dumber than I thought. The article doesn't say the Kuwaiti action will hurt the dollar, it says they are dropping the dollar to protect their own economy. The already shitty dollar is THE REASON they did it, you dumbshit! |
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| NCMike06 |
Quote: Originally posted by Ass Boil
My god. You are even dumber than I thought. The article doesn't say the Kuwaiti action will hurt the dollar, it says they are dropping the dollar to protect their own economy. The already shitty dollar is THE REASON they did it, you dumbshit! |
Thats wonderful.....it will have no effect on the dollar...and you didn't seem to mind that they did not have their currency pegged to the dollar pre 2003... were they protecting their economy then?? And in case you haven't noticed (of course you haven't, they don't teach that in Art History) the dollar has risen and fallen in value relative to other currencies throughout history......
Once again...much to do about nothing..... |
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| Ass Boil |
Quote: Originally posted by NCMike06
Thats wonderful.....it will have no effect on the dollar...and you didn't seem to mind that they did not have their currency pegged to the dollar pre 2003... were they protecting their economy then?? And in case you haven't noticed (of course you haven't, they don't teach that in Art History) the dollar has risen and fallen in value relative to other currencies throughout history......
Once again...much to do about nothing..... |
I love that the only part you are interested in is if it will affect the dollar....
Are there any other ways you would like to avoid the issue?
 <<<<NCMoron |
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| NCMike06 |
Quote: Originally posted by Ass Boil
I love that the only part you are interested in is if it will affect the dollar....
Are there any other ways you would like to avoid the issue?
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Well, Beavis...since our currency is...ummmm the dollar???? It is what's most important... We could discuss the effect on the Yen, but you would be even more clueless about that..
I love that you pick out any and all articles or reports that you think reflect negatively on the US, US economy, or Bush, and post it here pretending you have a fucking clue as to what you are talking about.
You are a living joke. |
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| Ass Boil |
Quote: Originally posted by NCMike06
Well, Beavis...since our currency is...ummmm the dollar???? It is what's most important... We could discuss the effect on the Yen, but you would be even more clueless about that..
I love that you pick out any and all articles or reports that you think reflect negatively on the US, US economy, or Bush, and post it here pretending you have a fucking clue as to what you are talking about.
You are a living joke. |
You're right. The 3rd largest oil producing nation deciding the dollar was too worthless to tie their currency to is nothing to give a second thought about.....
LOL
Your ability to deliberately miss the point of an issue is just amazing.... It's probably what allows you to be such a devoted Bush cum-guzzler. |
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| NCMike06 |
Quote: Originally posted by Ass Boil
You're right. The 3rd largest oil producing nation deciding the dollar was too worthless to tie their currency to is nothing to give a second thought about.....
LOL
Your ability to deliberately miss the point of an issue is just amazing.... It's probably what allows you to be such a devoted Bush cum-guzzler. |
First of all, Kuwait was the 7th largest oil producer in 2006....you can't even get simple facts correct.
Your ability to lie, hate, and pretend to understand is what server you so well in these ass beatings you consistently take.
When is that invasion coming, btw?? |
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| Ass Boil |
Quote: Originally posted by NCMike06
First of all, Kuwait was the 7th largest oil producer in 2006....you can't even get simple facts correct.
Your ability to lie, hate, and pretend to understand is what server you so well in these ass beatings you consistently take.
When is that invasion coming, btw?? |
And you apparently cannot read.
From the article above that you obviously did not read:
Quote:
Jan. 24 (Bloomberg) -- Kuwait, the third-largest Arab oil producer, may abandon the dinar's peg against the dollar in favor of a basket of currencies to help minimize economic harm after the dollar declined.
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Oh, and please show me where I said ANYTHING about an invasion of Kuwait?
Then remind us who just lied and pretended to know what the fuck he was talking about? |
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| NCMike06 |
Quote: Originally posted by Ass Boil
And you apparently cannot read.
From the article above that you obviously did not read:
Oh, and please show me where I said ANYTHING about an invasion of Kuwait?
Then remind us who just lied and pretended to know what the fuck he was talking about? |
Dumbass...let me remind you of what YOU said:
| Quote: You're right. The 3rd largest oil producing nation deciding the dollar was too worthless to tie their currency to is nothing to give a second thought about..... |
You DIDN'T say Arab..... Apparently...you can't read what YOU WRITE !!! :burst: Fucking stupid ass.
Its the leftbot conspiracy...Iraq began accepting payment for oil in Euros (in 2000. btw) so the moonbat conspiracy holds that we attacked them for that reason!!! And it was mentioned that we would be attacking Kuwait by some of your moonbat friends in this thread !!
So, whats that invasion date again?? Or are you going on the record as saying that Bush will not attack Kuwait in response to this currency switch??? In your 'expert' opinion, of course.... Put yourself on the record, coward, so when you lie about what you said later on, this can be thrown in your face.. |
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| Halcyon |
Quote: Originally posted by NCMike06
And when it doesn't happen, what will you say then about your moonbat conspiracy theory?? |
The same thing YOU do when Ass Boil shows you up time and time again....
Cut'n'Run from the thread crying like a little punk bitch and never admit you were wrong.
That's the sign of a true patriot right Mike?
Keep me on ignore buddy... It's the best thing you ever did.... Hide your head in the sand and pretend it doesn't exist.
I can't wait till you have to look back on your life and see what a spineless coward you were. |
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| Ass Boil |
Quote: Originally posted by NCMike06
Dumbass...let me remind you of what YOU said:
You DIDN'T say Arab..... Apparently...you can't read what YOU WRITE !!! :burst: Fucking stupid ass.
Its the leftbot conspiracy...Iraq began accepting payment for oil in Euros (in 2000. btw) so the moonbat conspiracy holds that we attacked them for that reason!!! And it was mentioned that we would be attacking Kuwait by some of your moonbat friends in this thread !!
So, whats that invasion date again?? Or are you going on the record as saying that Bush will not attack Kuwait in response to this currency switch??? In your 'expert' opinion, of course.... Put yourself on the record, coward, so when you lie about what you said later on, this can be thrown in your face.. |
Bwaaaaaahahaha!
Does adding the word "arab" make it easier for you to accept your daily beating, idiot?
Please show us how that changes the point of the story which is Kuwait had to drop the dollar because it was dragging down their economy.
Why do you think we have a presence in the middle east at all, you fucking dipshit? Because we like sand? You act as if the 3rd largest "ARAB" oil producer is not worth our time.
As usual you prefer to argue semantics instead of defending your stupidity.
You are a sad little clown. |
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| NCMike06 |
Quote: Originally posted by Ass Boil
Bwaaaaaahahaha!
Does adding the word "arab" make it easier for you to accept your daily beating, idiot?
Please show us how that changes the point of the story which is Kuwait had to drop the dollar because it was dragging down their economy.
Why do you think we have a presence in the middle east at all, you fucking dipshit? Because we like sand? You act as if the 3rd largest "ARAB" oil producer is not worth our time.
As usual you prefer to argue semantics instead of defending your stupidity.
You are a sad little clown. |
No, using the word ARAB...would have made you NOT look like a stupid fuck. As it happens, you didn't, you were wrong...and proven the stupid fuck....again. (and it proved that you don't even read what YOU post, much less what others post...and reports that are referenced... )
Please tell me where it matters, and on what basis it makes a difference. We certainly are not in the Middle East to force countries into pegging their currency to ours....
What a dipshit. |
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