Agree Venks, puting a time frame would be difficult and it will be a phased unpegging, some will do it early some later. Having said that if the dollar stays where it is by middle of next year things could get to be fun
Absolutely right.........you have pinpointed the cogs on the wheels perfectly. I was just giving the short term outlook in a yes/no type of answer :-P. As the picture unfolds, it will be clearer. Yes, the long term outlook is for the currencies in the region to be unpegged........but that doesn't seem probable in the near term (would be very hesitant to give any time frame on that).
So for now the answer to Kush's question seems "No"
"The power of accurate observation is commonly called cynicism by those who have not got it"
I agree with you Venks, that the peg will remain for a while but I think the long term outlook is that many countries will remove the dollar peg. We are seeing a general change in the balance of Power within the industrial nations, Countries such as China, India, Russia and of course the EU are slowly eating away at the dependence of the Finacial and Commercial world on the Dollar.
Major investments/ Takeovers over the last few years have been by non Americam companys, European companies have taken over each other to form major Global Players in the world in so many spheres.
Slowly many countries that have been Dollar pregged, especially alot of Oil producers will start to re think their strategy.
It is sometimes economical sense for some countries to keep their currency low so allowing a growth in Exports and a hopeful growth within their home markets. I beleive the present situation with the dollar is not a deliberate act on the part of the US, the dollar is weak because US goods, Finacial services etc are not so much in demand worldwide, other markets are taking over. There seems to be a tendency worldwide for alot instituions / Countries to remove the Dollar Peg.
The dollar peg will remain for a while, at least from what I have seen so far in news reports which quote governments, reserve banks and GCC.
Its a big decision with a lot of ramifications. I believe that amongst the GCC countries, only Kuwait has unpegged its currency so far. Dont forget that what is bad for you may not necessarily be bad for the country. The government will decide to delink its currency only if there are long term financial, economical, political and other benefits.
I think its a complex subject and if you really want to understand this stuff, you could try googling for the answers.
"The power of accurate observation is commonly called cynicism by those who have not got it"
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Agree Venks, puting a time frame would be difficult and it will be a phased unpegging, some will do it early some later. Having said that if the dollar stays where it is by middle of next year things could get to be fun
Absolutely right.........you have pinpointed the cogs on the wheels perfectly. I was just giving the short term outlook in a yes/no type of answer :-P. As the picture unfolds, it will be clearer. Yes, the long term outlook is for the currencies in the region to be unpegged........but that doesn't seem probable in the near term (would be very hesitant to give any time frame on that).
So for now the answer to Kush's question seems "No"
"The power of accurate observation is commonly called cynicism by those who have not got it"
I agree with you Venks, that the peg will remain for a while but I think the long term outlook is that many countries will remove the dollar peg. We are seeing a general change in the balance of Power within the industrial nations, Countries such as China, India, Russia and of course the EU are slowly eating away at the dependence of the Finacial and Commercial world on the Dollar.
Major investments/ Takeovers over the last few years have been by non Americam companys, European companies have taken over each other to form major Global Players in the world in so many spheres.
Slowly many countries that have been Dollar pregged, especially alot of Oil producers will start to re think their strategy.
It is sometimes economical sense for some countries to keep their currency low so allowing a growth in Exports and a hopeful growth within their home markets. I beleive the present situation with the dollar is not a deliberate act on the part of the US, the dollar is weak because US goods, Finacial services etc are not so much in demand worldwide, other markets are taking over. There seems to be a tendency worldwide for alot instituions / Countries to remove the Dollar Peg.
The dollar peg will remain for a while, at least from what I have seen so far in news reports which quote governments, reserve banks and GCC.
Its a big decision with a lot of ramifications. I believe that amongst the GCC countries, only Kuwait has unpegged its currency so far. Dont forget that what is bad for you may not necessarily be bad for the country. The government will decide to delink its currency only if there are long term financial, economical, political and other benefits.
I think its a complex subject and if you really want to understand this stuff, you could try googling for the answers.
"The power of accurate observation is commonly called cynicism by those who have not got it"