The Value of the UAE Dirham

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Value of UAE Dirham

Abstract

If I was to give you an opportunity to attend a presentation on corporate ethics hedging , it will take you a substantial amount of time to grasp the concept behind the presentation . This is because , `ethical investment ' has evolved and now it exists as an established term it is now a phrase that trips off one 's tongue (www .goldnews .bullionvault .com 2007 : 23-44 . However , I am somehow happy that it didn 't sound good to the

concerned authorities when I read a suggestion on the journal giving an implicit direction like the route to an Enron-type result because in the real sense , it meant that even if any company for example wanted to `hedge ' its `ethics ' no one anyone would proudly take the opportunity to advertise this type of service , even any well-known and reputable institution (www .goldnews .bullionvault .com 2007 : 44-54

Even during the presentation one will not clearly understand what is being said , and to the few , who understand , the name of the game that is being presented is known as corporate FX hedging , a well known name to an extent that even the central bank is talking about it . Basically the long awaited US dollar slide is likely to be underway and the main concern of the central bank is whether any business will be possible in an attempt to offer protection against such foreign-exchange risk exposure (Barber 2002 : 6-12 . May be you are starting to wonder , but this is not even the most interesting bit of the Central bank 's recent research report , it is not even the most second interesting , but to it occurs to me as at least an attempt to forecast the falling of British pound and dollar in the course of the year against the UAE Dirham . That is to say that the idea of UAE dirham rising steadily against sterling makes the US Dollar equivalent earnings a less troubling problem to any British expatriate (Central Bank Survey 2000 : 20-35

Because the Saudi Riyal is pegged to the US Dollar , the Euro is 50 higher from five years ago to a record 5 .5 Saudi Riyals this has increased the costs of import prices from Europe . This has led to more Federal Reserve rate cuts which are mainly designed to inflate the US money supply exerting an unbearable pressure on the Gulf currency pegs as shown in the graph below (www .goldnews .bullionvault .com 2007 : 23-44

On an infinite bigger scale , this is the real issue behind any such kind of presentation and this is not only about the risk , but real returns to the Gulf countries as a whole . According to standard chartered Bank the proposed GCC single currency would de-peg from the US-Dollar , even the Dubai Chamber of committee and industry has thrown its support behind the standard chartered bank recommendations , suggesting that floating will allow independent policy making and enable them avoid the same fate as the US...