9-28-2012 *Med

[Vixen]

9-28-2012 *Med ~LET ME EXPLAIN ON A BASKET. THEY WILL HAVE 4 COUNTRIES ALONG WITH IRAQ. I CANT SAY WHO IT WOULD BE, I THOUGHT IT WOULD BE COUNTRIES IN THE ME. WHAT HAPPENS IS THEY ALL HAVE A VALUE LIKE RIYAL IS AROUND .26 TO .32 THEN YOU HAVE THE KWD WHICH IS AROUND 3.87 YOU HAVE THE JORDANIAN DINAR THE BHARAIN DINAR. SO HOW IT WORKS IF THE DINAR LETS SAY DROPS BUT THE OTHERS ON IT RISE, THE DINAR WILL NOT LOSE ANY VALUE THEY FEED OFF EACH OTHER IN A BASKET FLUCTUATION IS MINIMUM. NOW, IN A FLOAT, THIS IS WHAT THE KUWAITI'S DID FOR ABOUT 2 YRS. IT CAUSED SO MUCH FLUCTUATION ON A DAY TO DAY RATE ANYWHERE FROM .40 OR MORE A DAY SO THEY DECIDED TO STOP IT AND WENT INTO A BASKET NOW IT HAS STABILIZED. THERE ARE SEVERAL TYPES OF FLOATS THE DINAR IS PEGGED AGAINST THE USD AND SHOULD HAVE INCREASED IN VALUE WHEN THE USD DID BUT IT DID NOT BECAUSE CBI GOT PERMISSION TO USE A CRAWLING PEG' AND ARE IN A MANAGED FLOAT. THIS IS WHERE THEY, THE CENTRAL BANK, PUT OUT OR TAKE IN CURRENCY TO KEEP THE RATE STABLE. THAT IS ABOUT IT.