Are Asian Leaving QATAR due to low currency value and high cost of living

How do we know whether a Currency is strong or weak if it is being pegged all the time.

For example, how do we know whether a swimmer is strong or weak if he is being tied to a ship all the time.

Let him swim in the open sea to see whether he can face the rough ocean and stay afloat or otherwise.

Kuwait

Malta

Bahrain

with one shot got two...lucky me

I am not talking about the strength of the currency in terms of longevity of average.

I am talking about the highest value. However using the part that you placed in bold, the Riyal as apperciated and is currently depreciating but still worth more. One the Riyal leaves the dollar, it'll be worth much more and become stronger by your definition too.

Thank you very much though for your post. (Not being sarcastic, I really do mean it).

I use xe.com regularly for conversions, but it's worth noting that they are live rates (which banks do not always give you).

Here are some Yahoo answers which I quickly googled.

http://uk.answers.yahoo.com/question/index?qid=20060911160456AA772pH

(says BD is 3rd but QR is known to be stronger)

http://www.dawn.com/2007/10/28/ebr5.htm

Article about Qatari riyal strengthening and unification of single currency in Gulf (interesting)

http://answers.yahoo.com/question/index;_ylt=AlM6E9Y6YAh02_E0nErowxHsy6IX;_ylv=3?qid=20070718065511AAi4GKj

(Yahoo answer which I asked a while back and got an answer to)

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Which currency is strong depends upon the timescale you are using. Over a long timescale, probably currencies such as the swiss franc or GBP have held their value the best. A strong currency is one that keeps its value over time, or even appreciates.

Being a strong currency is, in some ways, a circular definition. If people believe a currency is strong, they buy it as an investment. This pushes its value up, which in turn makes it strong. A strong currency is one which people will keep its value over time. For a currency to have value, people must need to buy it in order to trade. So if the country issuing the currency makes lots of stuff that people want, its currency strengthens as people buy it to buy gadgets. In the other hand, if too much currency is created and starts floating round the system, the price falls because lots of people have that currency and want to sell it. So a strong currency is created by a strong economy, controlled money supply, and a belief by everybody that these are true and will remain true.

http://en.wikipedia.org/wiki/Hard_currency ----> great reference

http://www.answerbag.com/q_view/375507 ---> opinion

http://www.xe.com/ ---> statistic

http://sg.answers.yahoo.com/question/index?qid=20060718205732AADXZnl --> opinion

search Google.

The order was

Kuwait

Malta

Qatar

for the top three. (saw it on a website and on yahoo answers)

Rather than asking me to prove I'm right, (which I'm a bit lazy to do), please prove me wrong.

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The Qatari Riyal is the 3rd strongest in the world ---> hummm... i dont think so.do u have a fact about this ? give me neutral reference site.

The GCC currencies have lost 15% in nominal effective exchange rate against dollar yet the countries may not fully de-peg their currencies with the greenback, according to HSBC.

“Full depegging from the dollar is highly unlikely,” said Simon Williams, HSBC chief economist (Gulf Markets) in a presentation yesterday.

Terming that depreciation had been a deliberate policy choice, he said within a more flexible regime, all GCC currencies would have appreciated sharply and rates had been forced down at a time when they should have been rising.

He expected that adjustment, if any, would probably be a “straight forward step-change in value of dollar peg” and that small adjustments would have no impact on price growth but would raise expectations on further change.

Unlike other emerging markets, he said currency weakness would not help the Gulf since exports were dominated by dollar-denominated energy commodities and import bore the full brunt of currency weakness.

“Inflation is a direct threat to the region’s competitive position as ability to attract capital and labour will be compromised by rising costs,” he said.

Terming that inflation is no longer a problem confined to Qatar and the UAE, he said revaluation would not solve the inflation problem but it might ease the symptoms.

Stressing that the peg belonged to a different era, Williams said terms of trade had changed hugely but the currency has not moved with it and “the Gulf is more capable of managing its own affairs than it has ever been.”

The possibility of change had increased significantly since inflation was rising and expectations were becoming entrenched, he said.

Hi everyone

Think the below news today will accelerate the departure of many families out of QATAR

Dollar drops to record low after Fed rate cut

NEW YORK: The dollar fell to a record low against the euro yesterday after the Federal Reserve cut its benchmark interest rate by a quarter percentage point and said the pace of US economic growth will slow this year.

I have not come across anybody who left qatar for good bcause of this.

but if the scene continues( I hope not...) then definately after year or later many of us may think of leaving.

I agree the salary offered in India is almost equal or little less then offered here. But there are some good reason to be here bcoz there you have to calculate all types of taxes applicable on salaried employee( which is a major factor for counting difference in amount paid)apart from that in India life is rough( though we will be in our own country) but practically if you see, life is cool here.

And if you are here then you are saving some amount and when you are going to your country( in a year or two) that gives you buch of INR( depends on lifestyle on every individual). Here no travel or attending relatives function etc..... so all that firm expenses are saved here and turned into big money when you go on vacation and there you will be for a month or two so for that period the piggy bank money is a lot to spend in short time.

Overall till QR comes between 7 or 8 INR, I feel this place is good as far as life and money is concerned.

Correct pls .... if I have mentioned something incorrect or add something if you feel I miss some....

I agree with you.

Yes I heard that the rumours were dismissed, but I strongly believe that whether Qatar wants to or not, it has to switch. I think it would be a stupid move to remain pegged and cause the nation to suffer just for the sake of pleasing the US base here.

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Hi

Your message was very encouraging, Specially Qatar will follow kuwait's way to leave being pegged to dollar. Recently there was an article where qatar declined this rumours. And may be by the time this really happen many of the trained and skilled workers may have found a better job elsewhere.

Many still are struggling to survive in Doha due to better security provided then back home, Others due to the facility provided is much better then their home country. And no dout this is a very idle city to be where you have the best of both family as well as work.

But this may not be possible when people start doing petty jobs for extra cash. Things will change for survival.

Hi

Your message was very encouraging, Specially Qatar will follow kuwait's way to leave being pegged to dollar. Recently there was an article where qatar declined this rumours. And may be by the time this really happen many of the trained and skilled workers may have found a better job elsewhere.

Many still are struggling to survive in Doha due to better security provided then back home, Others due to the facility provided is much better then their home country. And no dout this is a very idle city to be where you have the best of both family as well as work.

But this may not be possible when people start doing petty jobs for extra cash. Things will change for survival.

i dont think its jus the value... employers elsewher r offering more and more, wheras the salary rise in the gulf has been negligible (or to biased).... if the same amount is offered, the majority wud prefer working elsewher than the gulf.

a friend of mine was offered a job here in doha. he also had another offer from his homecountry which was equal to half the salary from here... he chose the later.

"Life is Fragile, Handle With Prayer"

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 Qatari Riyal is the 3rd strongest in the world, so if the QR is going low (in comparison to the Rupee) then the whole world is.

The QR is actually becoming a bit weaker because it's linked to the Dollar and the Dollar is VERY VERY weak.

However Kuwait has left the dollar and Qatar will follow suit. After that happens, the Riyal will become MUCH stronger than it ever was.

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i feel the day will come soon, but v are not ther yet.... also it depends on the field u r in... if its IT & related, u wud already have been out of qatar by nw :D

"Life is Fragile, Handle With Prayer"