Salla: 8:45 AM EDT Christine LeGarde at IMF press briefing. 10AM EDT Christine LeGarde special guest on CNBC 2PM EDT Christine LeGarde at global economy seminar w/Charlie Rose
legarde imf press briefing now…….she is doing a press briefing now on imf website.and she will on cnbc at 10am est as a guest… she will back at 2pm also for global ecomomy seminar on imf site too
Hyperboy: Can anyone explain to me the relation of the Kuwait Dinar vs. the Iraq Dinar?
I have heard to keep our eye on the Kuwait Dinar to see how the Iraq Dinar will behave. Tony said there will be a .20 difference between the two.
What I can't wrap my mind around is exactly how we look for it and what are we looking for. Are we looking at the float? Can someone who has a good understanding of what Tony means please elaborate. Thank you
Wombat: When the Dinar RV's, all the hedge funds will be buying which will increase the price of the Dinar over a period of time (not long) and it could hit 7-8 dollars before it starts to settle to a rate which will be close to the what the kuwait Dinar is worth. don't just jump in, wait a few days until the rate goes up and do your ce then.
TNMan: I'll make it short, if I can.
Iraq invaded Kuwait. We whipped Iraq's butt. The UN put sanctions on Iraq and created certain requirements on Iraq for invading Kuwait. One of the requirements Kuwait wanted when the time would come back around to increase the value of Iraq's currency, was for it to be around the same price as Kuwait. It was agreed that there would be a differential of 50 cents above or below (as I recall).
Why, you ask? The people of Kuwait do not do any work. The have hired Egyptians and people from other countries to do the work for them. They were afraid that if Iraq was allowed to increase their currency way above Kuwait, all of their workers would go to Iraq and work.
Tony is saying a lower amount differential. They may have changed the spread. So...hypothetically, if Kuwait's dinar, after the RV, is $5.00, you can expect Iraq's dinar to be within 50 cents up or down or whatever Tony has said.
I hope that helps. There are hundreds on this site. Someone else will have a differing opinion. Here they come....
BSC: All the currencies will revalue to a certain degree. Right now, the Kuwaiti Dinar is at $3.55 per $1 (USD). Once the GCR occurs, the Kuwaiti Dinar will have a new value as well.
Once the RV happens, if the Iraqi Dinar initially comes out at $3.71, it will likely jump up to several times that as it is traded, but that will be temporary (it could be days or weeks--nobody can predict that type of thing). The Iraqi Dinar will eventually "settle" as it's "normal" rate, and the guys predict that to be within 20 cents or so of the NEW Kuwaiti Dinar rate (post GCR).
Also, do some research on Google to see exactly what happened with the Kuwaiti Dinar when it revalued--it spiked up several fold before it "settled" at its "normal" rate.
Google the topic of the Kuwaiti RV and you will find a great deal of info including "charts" of how it spiked up and down over time. Fascinating stuff. I didn't save any of it, but it's there if you dig long enough.