The answer to your first question is yes, people from a variety of countries will leave Qatar for currency related issues. There are a number of factors that have created this situation, namely:
* the devaluation of the US dollar against other major currencies, due to US domestic fiscal problems (sub prime crisis, political uncertainty, government fiscal policy etc).
* the appreciation of other currencies against the riyal. Aside from teh fact that the Riyal is pegged to the USD, and therefore has subsequently devalued as a result, the currencies of many other countries are strengthening due to domestic issues. For instance the Indian Rupee is strengthening against the dollar as a result of a robust economy, productivity gains, a booming manufacturing sector sector, and so on.
* the cost of living in Doha has risen partly as a result of the weakened currency, which has inflated the cost of most imported goods. But supply and demand has also played a part, especially where accomodation is concerned.
And it is also supply and demand of labour that has seen many people leaving Qatar to return to India to work. Put simply, many people will earn more money doing the same job in India than they would here. Others, such as myself, earn more here than in my home country, hence I will stay. This case is indirectly related to currency movements - sure the weak Riyal may deflate effective wages, but so too does the availabilty of cheaper labour from other countries or a lack of demand.
Exchange rates alone cannot dictate how much your salary will be here, or in comparison to your home country, although they do play a part. Many financial analysts predict that the USD will continue to fall for possibly 3 or more years, depending on whether the US economy moves into recession. The decision by the US Federal Reserve to continue cutting interest rates is evidence that the dollar will weaken.
Now, the Qatar could revalue the Riyal against the dollar, which would help you, but it has been a policy of the Qatar Central Bank to maintain the peg. Similarly, the IMF could continue to pressure the US Federal Reserve to intervene and increase the value of the dollar, but it has been their view that such a move is not within their scope of responsibility.
The answer to your first question is yes, people from a variety of countries will leave Qatar for currency related issues. There are a number of factors that have created this situation, namely:
* the devaluation of the US dollar against other major currencies, due to US domestic fiscal problems (sub prime crisis, political uncertainty, government fiscal policy etc).
* the appreciation of other currencies against the riyal. Aside from teh fact that the Riyal is pegged to the USD, and therefore has subsequently devalued as a result, the currencies of many other countries are strengthening due to domestic issues. For instance the Indian Rupee is strengthening against the dollar as a result of a robust economy, productivity gains, a booming manufacturing sector sector, and so on.
* the cost of living in Doha has risen partly as a result of the weakened currency, which has inflated the cost of most imported goods. But supply and demand has also played a part, especially where accomodation is concerned.
And it is also supply and demand of labour that has seen many people leaving Qatar to return to India to work. Put simply, many people will earn more money doing the same job in India than they would here. Others, such as myself, earn more here than in my home country, hence I will stay. This case is indirectly related to currency movements - sure the weak Riyal may deflate effective wages, but so too does the availabilty of cheaper labour from other countries or a lack of demand.
Exchange rates alone cannot dictate how much your salary will be here, or in comparison to your home country, although they do play a part. Many financial analysts predict that the USD will continue to fall for possibly 3 or more years, depending on whether the US economy moves into recession. The decision by the US Federal Reserve to continue cutting interest rates is evidence that the dollar will weaken.
Now, the Qatar could revalue the Riyal against the dollar, which would help you, but it has been a policy of the Qatar Central Bank to maintain the peg. Similarly, the IMF could continue to pressure the US Federal Reserve to intervene and increase the value of the dollar, but it has been their view that such a move is not within their scope of responsibility.