Show Me The Money - Kuwait inflation 2.8% January - Iraq 3.61% Mar.
Iraq and Kuwait are running similar inflation rates and Iraq has more "proven" oil reserves than Kuwait (see chart below) - so why the delay? Kuwait's currency sits at 1 KWD = 3.45 USD.
We need that Government to sit down and take charge - 2 months and no movement tells me this is the delay. I'm starting to think we will see a much higher rate than the anticipated .86 USD rate many have anticipated - I feel somewhere between the 2 rates is more viable - higher because of the increased oil reserves but lower because of Iraq's infrastructure issue - I'm thinking 2.15 range to open - just an educated guess.........
The only exception to that amount would be if Iraq jumps on board with new GCC currency that is expected to be released ..... then I would assume we launch at a new rate closer to Kuwait's Dinar. I really can't see Kuwait de-valuating it's currency just so others can join in the GCC single currency plan, so the rate would have to remain similar (3.45 USD approx.) at that point.
Good Luck.......................
Kuwait inflation falls to 2.8 percent in January (AFP)
19 May 2010 KUWAIT CITY - Year-on-year inflation in Kuwait fell to 2.8 percent in January from 6.8 percent a year earlier, but it was up on December’s rate of 2.1 percent, official figures showed Wednesday. The consumer price index (CPI) 2010 rose to 138.8 points from 135.0, with most of the hike caused by rises in food and beverages prices, according to figures posted on the central bank’s website.
Food prices rose by 5.2 percent while beverages and tobacco surged 13.4 percent. Only transport and communications fell by a meagre 1.6 percent, the figures showed.
The January rise in CPI over the previous month prompted calls by the Gulf state lawmakers for the government to act.
Parliament is scheduled to hold a special debate next week over what a number of MPs called excessive rise in prices.
Inflation settled at four percent last year, sharply falling from a record-high 10.6 percent in 2008.
See also: List of countries by proven oil reserves
Countries with largest oil reserves
Most of the world's oil reserves are in the Middle East.[15]
Summary of Reserve Data as of 2008 Country Reserves [16] Production [17] Reserve life 1 109 bbl 109 m3 106 bbl/d 103 m3/d years Saudi Arabia 267 42.4 10.2 1,620 72 Canada 179 28.5 3.3 520 149 Iran 138 21.9 4.0 640 95 Iraq 115 18.3 2.1 330 150 Kuwait 104 16.5 2.6 410 110 United Arab Emirates 98 15.6 2.9 460 93 Venezuela2 87 13.8 2.7 430 88 Russia 60 9.5 9.9 1,570 17 Libya 41 6.5 1.7 270 66 Nigeria 36 5.7 2.4 380 41 Kazakhstan 30 4.8 1.4 220 59 United States 21 3.3 7.5 1,190 8 China 16 2.5 3.9 620 11 Qatar 15 2.4 0.9 140 46 Algeria 12 1.9 2.2 350 15 Brazil 12 1.9 2.3 370 14 Mexico 12 1.9 3.5 560 9 Total of top seventeen reserves 1,243 197.6 63.5 10,100 54 Notes: 1 Reserve to Production ratio (in years), calculated as reserves / annual production. (from above)
Iraq and Kuwait are running similar inflation rates and Iraq has more "proven" oil reserves than Kuwait (see chart below) - so why the delay? Kuwait's currency sits at 1 KWD = 3.45 USD.
We need that Government to sit down and take charge - 2 months and no movement tells me this is the delay. I'm starting to think we will see a much higher rate than the anticipated .86 USD rate many have anticipated - I feel somewhere between the 2 rates is more viable - higher because of the increased oil reserves but lower because of Iraq's infrastructure issue - I'm thinking 2.15 range to open - just an educated guess.........
The only exception to that amount would be if Iraq jumps on board with new GCC currency that is expected to be released ..... then I would assume we launch at a new rate closer to Kuwait's Dinar. I really can't see Kuwait de-valuating it's currency just so others can join in the GCC single currency plan, so the rate would have to remain similar (3.45 USD approx.) at that point.
Good Luck.......................
Kuwait inflation falls to 2.8 percent in January (AFP)
19 May 2010 KUWAIT CITY - Year-on-year inflation in Kuwait fell to 2.8 percent in January from 6.8 percent a year earlier, but it was up on December’s rate of 2.1 percent, official figures showed Wednesday. The consumer price index (CPI) 2010 rose to 138.8 points from 135.0, with most of the hike caused by rises in food and beverages prices, according to figures posted on the central bank’s website.
Food prices rose by 5.2 percent while beverages and tobacco surged 13.4 percent. Only transport and communications fell by a meagre 1.6 percent, the figures showed.
The January rise in CPI over the previous month prompted calls by the Gulf state lawmakers for the government to act.
Parliament is scheduled to hold a special debate next week over what a number of MPs called excessive rise in prices.
Inflation settled at four percent last year, sharply falling from a record-high 10.6 percent in 2008.
See also: List of countries by proven oil reserves
Countries with largest oil reserves
Most of the world's oil reserves are in the Middle East.[15]
Summary of Reserve Data as of 2008 Country Reserves [16] Production [17] Reserve life 1 109 bbl 109 m3 106 bbl/d 103 m3/d years Saudi Arabia 267 42.4 10.2 1,620 72 Canada 179 28.5 3.3 520 149 Iran 138 21.9 4.0 640 95 Iraq 115 18.3 2.1 330 150 Kuwait 104 16.5 2.6 410 110 United Arab Emirates 98 15.6 2.9 460 93 Venezuela2 87 13.8 2.7 430 88 Russia 60 9.5 9.9 1,570 17 Libya 41 6.5 1.7 270 66 Nigeria 36 5.7 2.4 380 41 Kazakhstan 30 4.8 1.4 220 59 United States 21 3.3 7.5 1,190 8 China 16 2.5 3.9 620 11 Qatar 15 2.4 0.9 140 46 Algeria 12 1.9 2.2 350 15 Brazil 12 1.9 2.3 370 14 Mexico 12 1.9 3.5 560 9 Total of top seventeen reserves 1,243 197.6 63.5 10,100 54 Notes: 1 Reserve to Production ratio (in years), calculated as reserves / annual production. (from above)