Sunday, May 20, 2007

Told You So

KUWAIT, May 20 (KUNA) -- After approval by the Cabinet in its session Sunday, the Kuwaiti Dinar's exchange rate against the US Dollar is to be based on a basket of main currencies, which was the previous system abandoned since January 5, 2003, said Governor of the Central Bank of Kuwait Sheikh Salem Abdelaziz Al-Sabah today.

Kuna siteStory pageKuwaiti Dinar exchange rate against USD based on b...5/20/2007

Just like many had predicted and as I mentioned in previous posts.

7 comments:

Happy Wolf said...

does this mean they are going to reevaluate the KD again?

frigg said...

im pretty sure those international bank analysts had done their homeworkd when they pegged an 80% confidence on this happening. lets see where the currency moves now.

its about time.

bu ziyad said...

wolf: they already did!

frigg: it had to happen and its only moving up from the previous level. it seems other GCC countries are cought by surprise so let's see where the proposed unified currency goes..

Drunk'n'Gorgeous said...

Will an increase of about 10 fils really make that big of a difference?

bu ziyad said...

D&G: 10 fils would be alot actually and it has not moved nearly as much.. it makes a difference in terms of KD direction in the future. feel sober already? :p

1001 Nights said...

I wonder what weights they use? And would we be pegged to the basket or would we be allowed to maneuver within a band against that basket? I hope it's the latter.

So much for the single currency!

bu ziyad said...

nights: the basket is not known so this gives the central bank flexibility to set the rate..