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.
