Kuwaiti Dinar unchanged for days September 1, 2008
Posted by mylastresort in analysis.Tags: Central Bank of Kuwait, Chart, Dinar, Dollar, Dollar KD, Graph, KWD
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KWD at record high against US Dollar June 8, 2008
Posted by mylastresort in analysis.Tags: Dollar, High, KD, Kuwaiti Dinar, KWD, Record, US
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The Kuwaiti Dinar reaches a record high against US Dollar to .26480 fils per US Dollar (or $3.7764 per KD).
Dollar peg will not help inflation June 2, 2008
Posted by mylastresort in analysis, qatar, rumors, saudi arabia.Tags: Abu Dhabi, currency, Dirham, Doha, Dollar, Gulf, Henry Paulson, inflation, Pegs, qatar, Riyal, Treasury Secretary, uae, US
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According to U.S. Treasury Secretary Henry Paulson abandoning the Gulf’s currency pegs to the dollar will not solve their vexing inflation problems. Speaking to reporters on his plane from Qatar to UAE, Paulson said the Gulf rulers in the region have… “quite an awareness that the peg does not influence inflation to a significant degree… They recognize that inflation is the overriding issue. Ending the peg is not the solution to the inflation problem.”
Economic policy is not a politcal decision that can be altered via public relations, it is a sovereign matter. Paulson stated that he could not rule out any moves by Gulf states to abandon their peg’s.
Agility surges 10% in one day May 28, 2008
Posted by mylastresort in analysis, rumors.Tags: Abdulmohsen al-Bahar, Agility, Contract, Dollar, Kuwait Stock Exchange, Kuwaiti Dinar, Noor Investment, US Military
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Shares of Agility end up almost 10%, making its biggest single-day jump in at least 2 years, after the company stated it won a U.S. military contract worth $2.8 billion.
“There were rumours that the United States will not renew that contract, but today when the company announced its renewal, the share price has surged after it had fallen on the previous rumours”
- Abdulmohsen al-Bahar, Noor Investment
Agility is expected to keep its run up for another 150 fils at least before its first correction. My bid to buy at market rate ended up in the dust when the stock began trading at limit high this morning.
Euros rise & Arabs spending April 23, 2008
Posted by mylastresort in analysis.Tags: Dollar, EURO, KD, Record High
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The Euro has been closely watched this week as signs that it was crossing the 1Eur = $1.60 (and it did this morning by hitting the $1.6002 mark). As for short-term expectations many Arab Gulf companies which import products from Europe are severely hurt by the sharp rise in the Euro.
As for today the price in the market for 1 Euro against Kuwaiti Dinar is approximately:
- 1 Euro = .425 fils
It is trading between a range of .423 fils to .425 fils. based on many factors future Euro expectations are that it will come down to .415 – .417 fils/1 Euro levels by May 30th.
Gulf currencies collapse 40% April 8, 2008
Posted by mylastresort in analysis, bahrain, qatar, rumors, saudi arabia.Tags: AED, bahrain, BHD, Central Banks, Currencies, Dirham, Dollar, Dubai, gcc, Gulf, kuwait, KWD, oman, OMR, qatar, Revaluation, saudi arabia, Saudi Riyal, US
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Many have called for a revaluation of Gulf currencies from the historical dollar peg. The flood of liquidity and rapid inflation has been hailed as a warning to the falling interest rates, decline of the US Dollar, and record high oil. The loss in value of the Gulf currencies has been partially responsible in the rise of inflation. The inflationary pressures, which should govern an increase in rates by the central banks, have created markets so liquid that deposits are being quoted at negative rates. The list below shows the Gulf currencies depreciation, in value, due to the Dollars decline.
Fixing the Kuwaiti Dinar to the Dollar, again… April 8, 2008
Posted by mylastresort in analysis, saudi arabia.Tags: Again, Dinar, Dollar, Fix, gcc, kuwait, KWD, Peg, Single currency, Unified Currency, Union, USD
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In order to remain on track for the single Gulf currency, Kuwait, which revalued its currency in May 2007, must fix its currency back to the Dollar, to be inline with the rest of the Gulf countries. The formation of the single currency, (rumored to be called the ‘Dinar’), cannot be created without the valuable Kuwaiti economy. Kuwait, is considered to have the most advanced, and stable, economy in the Gulf. Since all the countries are fixed to the Dollar, once Kuwait decides to re-enter it will be forced to peg again, which will not be to beneficial to the local economy.
Single Currency: The biggest influence, Saudi Arabia April 7, 2008
Posted by mylastresort in analysis, saudi arabia.Tags: Dollar, economy, gcc, Gulf, Influence, Peg, Riyal, saudi arabia
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I view the Gulf countries as each dealing with their own dilemma regarding the unified currency, but on the forefront would be the Kingdom of Saudi Arabia, for the following reasons:
- Biggest, most influential country in the GCC
- Radical influence of Islam (preventing the country from flourishing)
- Uncontained inflation
- Non-existent political reform
- Fixed US Dollar peg, with no expectation of revaluation
- Weak economical agenda
The actions of the Saudi monarchy govern not only their peoples, but influence the entire Gulf. Any actions by the monarchy, or demands, will be more than likely be granted by the smaller Gulf neigbors. Basic commodity prices rose approximatley 20-25% this month in Saudi Arabia, regulations have remained poorly maintained, rather than resolving the problems, government interventions seem to be cycling the problems to other sectors in the economy.
Gulf Arab inflation expected at 8% in 2008 April 1, 2008
Posted by mylastresort in analysis, bahrain, qatar, rumors, saudi arabia.Tags: Arab, Asia, bahrain, Bank, Cap, currency, Dinar, Director, Dirham, Dollar, Federal Reserve, Gulf, IMF, inflation, Inflation Report, International Monetary Fund, kuwait, Lending, Level, Liquidity, Middle East, Mohsen Khan, oman, Peg, qatar, Rental, Riyal, Saudi, saudi arabia, uae
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The International Monetary Fund (IMF) has stated that it expected the average Gulf Arab inflation levels to increase in 2008 to 8% from 7% in last year. Inflation has been a major problem in the Gulf arab region with migrants workers protesting and import prices increasing due to the dollar peg by Arab countries. As the US Dollar loses value the Gulf countries are forced to lower rates in succesion to the US’s Federal Reserve.
“The inflation rate in the Gulf was around 7 percent last year and we expect it to be seven to eight percent this year… On the demand side, there is a big push to expand government spending and liquidity is high in the system, which means people have more access to liquidity and more access to spending power”
- Mohsen Khan, IMF director of the ME
Subprime mess reaches Europe and hits UBS April 1, 2008
Posted by mylastresort in analysis.Tags: Bankruptcy, Dollar, economy, Effects on, Europe, First Quarter, Franc, Loss, Marcel Ospel, Real Estate, Sub-prime, subprime, Swiss, UBS, Union Bank of Switzerland, Writedown
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The subprime mess has made its way into the European markets in a direct hit at the worlds largest wealth manager Union Bank of Switzerland (UBS). In a statement released minutes ago the bank stated a first quarter loss of $12.03 bl.
“I have always stated that I ultimately take responsibility for the bank’s situation… we have been able to address the firm’s most pressing problems.”
- Marcel Ospel, Chairman (would be succeeded by Peter Kurer)
UBS wrote down an additional $19 bl in US real estate and related assets this morning, causing a net loss of Swiss Francs (CHF) 12 bl (or $12.03 bl). The bank also announced it is seeking another CHF 15 bl in new capital through a rights issue. The bank is still reeling from a series of billions in bad investments last year resulting in $18.4 bl in writedowns. The issue of bankruptcy is not on the table as one of the worlds largest banks will surely be supported by its strong government.
