MilitiaMan: "Thus, to be stable they’ll need a strong and stable exchange rate for to do that" (1,182 Wasn't Strong Enough, So It Went To 1,460 LOL) 5/3/21

by **RamblerNash** Mon May 03, 2021 10:08 pm

MilitiaMan

The AMF tells us the valuation of the AAD is 3x SDR / IMF. They don’t get specific from what I see. What I have seen is them give values of loans in USD terms whereby, one can do the math based [on] the value and come up with an exchange rate. If I recall accurately there were loans to Tunisia a couple years ago that amounted to over $4.00 USD. Even today 3x SDR is over that... As of Friday the SDR at the IMF is over $1.43+... If they keep to what the AMF has for the AAD, we can have an idea what to look for into the future. Imo...We know from what we have been told they are not floating the currency. Thus, to be stable they’ll need a strong and stable exchange rate for to do that. To defend a currency at a low rate can be far to risky. The stronger it is the better and easier it is to defend imo.