Job Discussion Forums

Spinoza · Joined: 17 Oct 2004 Posts: 194 Location: Saudi Arabia

Hi. Sorry if this is common (I searched), but I've been offered a job in the KSA that pays in USD. Just wondered how commonplace it is.

The USD is expected to fall, which is a shame, but the salary is pretty high and it seems a good gig, so I'm happy.

johnslat · Posted: Sun Oct 18, 2009 10:51 pm Post subject:

Dear Spinoza,

For all practical purposes, there's no difference since the riyal is pegged to the dollar.

In June 1986, the riyal was officially pegged to the IMF's Special Drawing Rights (SDRs). In practice, it is fixed at 1 U.S. dollar = 3.75 riyals, which translates to approximately 1 riyal = 0.266667 dollar. This rate was made official on January 1, 2003.
The riyal briefly rose to a 20-year high after the Federal Reserve cut interest rates on September 18, 2007 and the Saudi Arabian Monetary Agency chose not to follow suit, partially due to concerns about the inflationary effects low interest rates and a lower value for the riyal. The riyal returned to its peg against the U.S. dollar in early December of 2007.

http://en.wikipedia.org/wiki/Saudi_riyal

And, if you don't like wiki:

"The Barclays bundles are more complex. The first is the Asian and Gulf Currency Revaluation ETN (PGD). This ETN includes currencies of the Saudi Arabian riyal, Hong Kong dollar, United Arab Emirates dirham, Singaporean dollar and Chinese yuan. All these currencies are welcome additions to our list of investing options. They are all, also, pegged to the U.S. dollar, at least according to Barclays. This is certainly true of the Saudi riyal."

http://seekingalpha.com/article/82769-currency-bundles-pegged-to-the-dollar

Regards,
John

Cleopatra · Posted: Mon Oct 19, 2009 3:44 pm Post subject:

Never Ceased To Be Amazed · Posted: Mon Oct 19, 2009 4:10 pm Post subject:

The Lathe of Heaven · Posted: Mon Oct 19, 2009 8:17 pm Post subject:

I calculate all my earnings in Canadian dollars anyways so if the US dollar goes below the Canadian then I'll start to worry.

TLOH

also in saudi · Joined: 26 Feb 2006 Posts: 137

Anyone waiting to convert pounds or euros to US dollars should welcome a temporary fall of the dollar.

scot47 · Joined: 10 Jan 2003 Posts: 15343

For those of us who spend in the Eurozone life has become harder as a result of the exchange rate between US $ and Euro. Nothing we can do about it though - and at my advanced age I will not be looking for a new carer path - or a new employer !

Nochasauras · Joined: 16 May 2009 Posts: 15 Location: jubail, KSA

scot47 · Joined: 10 Jan 2003 Posts: 15343

"The gov't could be giving schools incentives to pay foreign workers in US dollars, knowing the general population still has the mindset that the US dollar is king."

Simply not true. Speculation based on no knowledge of how the Saudi econiomy functions. Dollars do not circulate widely in Saudi Arabia. They are available at banks and Bureaux de Change but they are not and never have been an alternative means of exchange.

Citizenkane · Joined: 14 Jun 2009 Posts: 234 Location: Xanadu

Is it even legal for Saudi companies (or schools or whatever) to pay workers in any currency other than Saudi rials? I don't think it is.

Never Ceased To Be Amazed · Posted: Wed Oct 21, 2009 1:33 pm Post subject:

No matter how much our new economist on the board wants to dumb down the dollar, he is talking out of his toucas. Although I won't go as far as to say that the "Dollar is King" as the poster seems to believe. I can assure you that the dollar is...well..."Sound as the Pound".

Now, with that said, does anyone here know the current exchange rate of the Pound to the Quid? Very Happy

NCTBA

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

My guess would be that as long as the Gulf countries are scared spitless of Iran (true since pre-historic times actually and not about to change any time soon), the oil business will likely be based on the dollar. I will expect that to change the day the Chinese military shows up to take over guard duty from the US military.

VS

Never Ceased To Be Amazed · Posted: Wed Oct 21, 2009 2:54 pm Post subject:

"Scared spitless" Laughing

"i'm lovin' it"!

NCTBA

PeterBar · Joined: 20 Jul 2006 Posts: 145 Location: La France profonde

NCTBA

The rate of the Pound to the Quid is pro quo.

johnslat · Posted: Wed Oct 21, 2009 4:51 pm Post subject:

Dear NCTBA,

The rate of the pound to the quid is exactly the same as the dollar to the buck.
Interesting etymology (and a tip of the hat to PeterBar)

"one pound sterling," 1688, British slang, possibly from quid "that which is" (1606, see quiddity), as used in quid pro quo"

So, it is what it is.

Regards,
John