Money, money, money A global and personal financial crisis

by Kathryn SemcowOctober 1st, 2008 | Editorial, Issue 11 October 2008

I seem to be having a lot of money problems lately. It all started when my debit card got stuck in an ATM. I can’t tell you how badly I wanted to break open that machine and grab the cash that was rightfully mine, plus more.

Which got me thinking, how do banks move money to and from ATMs without getting robbed? According to one insider from a reputable cash in transit (CIT) company, the UAE has very few, if no, incidents in this area. Africa and South America, on the other hand, have the highest heist statistics in the world, and even the UK experiences hundreds of cases a year.

Still, the threat is here thanks to lax policies on CIT. While banks in most other countries have cash processing centres dedicated solely to CIT, UAE banks make the armoured car crewman stand in line like any other customer. Does this seem like an easy target? “There needs to be more discretion,” says the insider.

Another money problem – my rent cheque bounced this month. I think I was about 800 dirhams short. I don’t know what happened. I bought nothing out of the ordinary. The only explanation is that the standard bundle of goods I buy every month, from bottled water to shampoo and conditioner, simply costs more. Time to start scaling back. I’m on a budget.

And something tells me I’m not the only one out there worrying about money. Rising prices are forcing everyone in the industry to scale back, to re-examine their budgets.

What to do? The traditional solution for inflation is for governments to increase interest rates, thus encouraging people with money to invest rather than spend, ultimately reducing the supply of money in the economy.

No problem, except for the fact that most GCC currencies are pegged to the US dollar. The US Federal Reserve has been slashing interest rates for the past year, requiring the GCC powers that be to follow.

Insha’allah, this new GCC common currency will step away from the dollar. The greenback’s day is done, and it is time for the region to take hold of its own financial power.

The only problem is, when this happens, I’ll have no excuse for money problems.