Oman - a country rarely spoken about. What's happening there?

[u/Necessary_Wing799]

Oman is located in a area we heat about a lot for an array of reasons - there are many famous and newsworthy spots close by from dubai to Doha to Iran and Yemen...... what goes on in Oman? Let us know how life is here and any relevant info on its current state....

[u/Big-Attention-69]

The 3rd strongest currency in the world, Omani Rial

[u/tdl432 → u/Big-Attention-69]

No. Just no. The OMR is pegged to the U.S. dollar at an exchange rate of 1 rial to US$2.6008. You cannot say it is stronger or weaker than USD. The inflation or deflation of its currency directly mirrors the USD because they are pegged.

[u/Big-Attention-69 → u/tdl432]

I’m just using this source and others.

[u/LimpEnvironment5144 → u/Big-Attention-69]

That’s not how currency strength works AT ALL.

[u/LimpEnvironment5144 → u/Big-Attention-69]

What do you mean by that?

[u/jaimieb69 → u/LimpEnvironment5144]

1 Omani Rial is about US$2.60

[u/LimpEnvironment5144 → u/jaimieb69]

Read my comment above. That conversion rate indicates absolutely nothing.

[u/jaimieb69 → u/LimpEnvironment5144]

Ahh… ok. So, foreign currency exchange rates are simply random numbers that are decided by kindergartners each day and indicate “absolutely nothing” about the strength of a nation’s currency. Thank you, Einstein.

[u/tdl432 → u/jaimieb69]

The OMR is pegged to the U.S. dollar at an exchange rate of 1 rial to US$2.6008.

Pegged means "equal". Thanks Einstein!

[u/jaimieb69 → u/tdl432]

Work on your reading comprehension, my friend. Your comment is a non sequitur. Limp said the exchange rate indicates “absolutely nothing” about a currency’s strength. So, according to Limp, when I see that 1 GBP = 1.26 USD and 1 VND = 0.000039 USD, there is absolutely nothing I can deduce about the relative strength of those two currencies. What Limp is saying is factually incorrect.

[u/LimpEnvironment5144 → u/jaimieb69]

Okay, what can you deduce about the GBP from that comparison? In fact, what does it mean for a currency to be strong?

Let me share a parallel example: Amazon stock trades at X dollars. They announce a stock split and now each holder of Y Amazon shares has 10Y Amazon shares, but the price per share is 0.1 X.

Did Amazon stock suddenly become weaker?

[u/bumder9891 → u/LimpEnvironment5144]

1 Omani Rial is equal to about $2.60. It's bizarre when you take a taxi ride for 15 Rial thinking it's not much then realising it's about $40.

[u/LimpEnvironment5144 → u/bumder9891]

Again, that says absolutely nothing about the currency strength.

[u/tdl432 → u/LimpEnvironment5144]

Limp, sorry to see everyone down voting you. The education system is apparently broken or these people down voting you have never taken an economics lesson.

[u/LimpEnvironment5144 → u/tdl432]

I don’t expect too many people to understand macroeconomics. Even I don’t, really. But I am surprised to be so heavily outnumbered, and I’m surprised by how confident people are of their wrong opinions.

[u/bumder9891 → u/LimpEnvironment5144]

It's the third strongest (behind Kuwaiti and Bahraini) which means one of their particular currency is worth a lot. Like I mentioned, 1 Omani Rial equals around $2.60 meaning it's far stronger than the USD

[u/LimpEnvironment5144 → u/bumder9891]

Again, not how currency strength is determined. Google it. It’s far more complicated than that.

[u/ffx2982 → u/LimpEnvironment5144]

a single rial is worth more than 1 USD, 1EUR, 1GBP and every other national currency in the world, besides the currencies of Kuwait and Bahrain (and sometimes they even overtake the latter for the 2nd place)

[u/LimpEnvironment5144 → u/ffx2982]

That is not how you measure currency strength, though. If that was true, you could start a new currency, the HUSD (Hundred USD) == 100 USD, and this would be the strongest currency ever. Also, it would change absolutely nothing. The bread that costs 2 USD would cost 0.02 HUSD. That’s it.

Currency strength is a complex measure which involves multiple factors such as domestic inflation, international demand and supply, etc. It has nothing to do with the dollar conversion rate.

[u/ffx2982 → u/LimpEnvironment5144]

true, just oop's verbal oversimplification