Hello Friends,
With the rising costs, it is increasingly becoming difficult to live a life in Dubai. UAE is facing domestic inflation rate of 9.3 % as per an article published in Gulf news on the 26th of Sep 2007. If the UAE Central Bank decides to re-evaluate its currency following may be the results for the other currencies: -
1) 1Dollar may be equal to say between AED 3.2 - AED 3.3
2) Indian Rupees may go a little high say AED 1 = INR 12
The above figures may not be what I have predicted, but with the Indian Rupee getting stronger in no time we may end up getting fewer rupees for a dirham, or in a hypothesis situation it may end up as .......AED 1= INR 1....yeah if this happens we all are definitely running away from here. Now should UAE follow the footsteps of Kuwait who has switched from a dollar peg to a currency basket ? Should we stop buying dollars...and convert our Fixed Deposits to Rupees ?
At the current inflation cost will we be able to get our Mercedes - umm I mean whatever your dreams are.... ? You are more than welcome to post your comments/opinions.
Don't know about the economy issues...but 1 AED= 1 INR may not be a reality mate....it may not happen..
ReplyDeleteDeeps...!
AED = INR ? Doubt it. For that the Indian economy will have to actually equal the strength of UAE Economy. Considering that India cannot match UAE's per capita GDP anytime soon, I think those dreams of owning a merc in UAE can become a reality in your lifetime KB.
ReplyDeleteBoss.. ;)
Agree with u kaps.... I am definitely getting rid of all the dollars and buying back Rupees...umm better get ur FD's converted to Rs as it makes more sense..
ReplyDeleteR....!
Inflation is fine but Inflation cost? thats new word to the economics lingo dude. keep it up. better read thru mankiw again :D
ReplyDelete