Temetwir

26.1.06

دلوّرني؟

Someone explain this to me like I'm a six year old.

Two weeks ago, bel ma6aar, my friend and I were debating the pros and cons of rab6 il dinar bel dollar as I was exchanging and cashing in on her majesty's sterlings. I was telling him ena tharr il dinar o geemtah obviously, o kan il mafroth yethel marbo6 b salat 3omlaat ahwan lena. He tried to convince me otherwise. My side of the argument was that it was way more political than economical.

I did not, and still do not, know why it was done in the first place. Been meaning to look into it since a number of MPs have questioned. But to no avail.

Il mohem, ma7aasin el sodaf, my friend saw one of his professors in the airport (bel 3elom el idareya). He had his son with him (welne3im feh), who also studies abroad and would be with me on the same flight. The four of us started talking about universities and majors and all that. Then, me being me, asked the professor directly for his opinion on our previous discussion about the currencies. He agreed that it wasn't the brightest idea, and that the dinar took a hit. Basically, he was saying what I was saying. Only I was just saying it, he was actually meaning it.

So now I really wanna know, why was it done? We know it affected the dinar, question is how? Lena marbo6 (what's the english word, fixed? pegged? linked heh?) directly b 3omla wa7da nesba o tanaasub as'hal ena it gets affected by one sole currency? Ghair lama you get the average of a group of currencies, wela shelsalfa? Il bank il markezy shyabi..

Explain this to me like I'm a six year old if you would. Chairz.

posted by Temetwir at 1:16 PM

10 Comments:

  • Ya salam 3laik! I've been thinking of this for ages!!!
    I think the word to use is "tied".. not sure though..
    As mentioned, it's more political than eco., and to be more exact, I think it was pushed by the US itself. (this somehow reminds me of the 9/11 Loose Change movie -- where an American/Kuwaiti company is mentioned).

    I believe tying it to the Euro, Sterling and $, would've made more sense.

    * Everytime someone from the Bush party gets the house, the US economy takes a bite, a HUGE one.

    By Blogger MBH, at 26.1.06  

  • thank u babe for this question...its the first time u ask something i can answer

    well kuwaiti denar used to be tied or linked to a basket of currencies

    and that system worked just fine and it was the smartest way to do it

    now why they changed?

    the answer is in some year i cant recall it the GCC countries came together and decided to have one currency like the euro for GCC countries

    the trick was what?

    all the other 5 countries have their currencies linked to the dollar alone which is a dum system

    so kuwait decided to go with them instead of they change to our better system because its easier for one to change for the 5 , rather than the 5 change for the one

    totally agree with ur point of view that the basket system is better and safer for us, the only good point about the dollar system is that we get our money for the oil by the dolar so that will easy things up

    but again its not the smartest way to do it

    thanks again:)

    By Blogger Mohammad Al-Yousifi, at 27.1.06  

  • by the way the targeted year to have one GCC currenciy is 2010, and they didnt decide yet what to call it!

    denar derham reyal dollar!

    By Blogger Mohammad Al-Yousifi, at 27.1.06  

  • kila ma6goog, interesting.
    So, why don't we propose a name for it? That should be fun!
    Here goes nothing :: DDR (Dinar-Dollar Ridiculous)

    By Blogger MBH, at 27.1.06  

  • mbh
    havent watched loose change, any good?

    zinzin
    so it was like "kha6wa tamheediya" for the gulf currency.. ok lets see, it didnt make a huge difference, laaken it did affect the kd's exchange rate mogaabel a number of other currencies didnt it .. lat7esbeenha bel 1 kd 3ad, 7esbeeha b kemeyaat u know? thnx btw

    kila ma6goog
    heh inshalla ill ask more of this stuff once i find any trouble understanding anything

    ok so u and zinzin are saying the same thing, that it was done as a step towards taw7eed 3omlat dowal majles el ta3aawun

    u say that "the only good point about the dollar system is that we get our money for the oil by the dolar so that will easy things up"

    what do u mean by it makes things easier for us?
    here is a question.. the recent rise in oil barrel prices, would it have been BETTER if we were sticking to the basket, or did the fact that we changed to the pegging of the USD made it more profitable?

    *about the one currency for the GCC countries, is it just me or is does it sound 'not so bright'? i thought the Euro thing didnt work for the best for the population of the countries that got in on it

    mbh telga bacher betseer loya 3al esim hahah

    By Blogger Temetwir, at 27.1.06  

  • You have been tagged!

    By Blogger f_, at 27.1.06  

  • zinzin daloo reni?
    its "dalwerni" .. waaaain ely tefham kalami o sayda el7araka :p

    fedo ur the 2nd one to tag me abt this heh.. inshala :)

    By Blogger Temetwir, at 27.1.06  

  • Temetwir, You talked about the movie in your blog!!!
    I saw both 1st & 2nd editions. Go for the 2nd. Very much worth the time.
    Go to mininova.org or piratebay.org and grab the torrent. (It's free to distribute).

    Regarding your question about the recent increase in oil rates: The major reason for USA to occupy Iraq is the oil, right? Not totally. Notice the amazingly high prices in US? Who's cashing in? Bush. Why? The Bush family are running the oil business.
    Now, if the Kuwaiti Dinar was tied to a "basket" of other currencies, we wouldn't have much profited.
    This sounds like a mutual conspiracy :/

    By Blogger MBH, at 27.1.06  

  • bo fay
    i think ely reba6a 6ala3 sej e7mar since obviously it wasnt the brightest idea in the world

    althu im very interested to see whats the idea behind the GCC currency.. not "the idea" obviously, but what the plan is

    7alata 3ad mafeeh takh6ee6 o bs chethy yazatlehom el fekra la testagreb 3ala rabe3na

    mbh
    oh yea ok 'loose change' the one abt the conspiracy thing

    and i think the rise in oil prices is fucking with the us economy more than i can imagine
    im thinking abt the annual trade deficit every single time prices soar
    in turn, i cant imagine ppl being so crazy abt keeping their investments, hence insecurity hence the dollar losing its value .. up until u reach us, dinarna pegged to the dollar o e7na eyeena e6rag

    of course when u think abt the dollar as THE currency of the world in terms of it being the major one.. i think u can imagine sheseer b all the other economies

    but what do i know, i dont even know why it was pegged in the 1st place heh

    besides, if ur looking at Bush cashing in, laish mat6aale3 rab3ek ely 3endek ehni bel awal :p

    By Blogger Temetwir, at 27.1.06  

  • lol .. rab3i elee hnee marfoo3 3anhom el qalam :p
    ba3dain, e7na el eqte9ad 3indina a7san men USA (el mafroo'6) Oo 7qooq el sh3b laha mokan, mo methel el akh el la6eef "Shajarah" (Bush) elee dayes 3ala elee ako welli mako!

    By Blogger MBH, at 27.1.06  

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