As an update to my previous post, it turns out the other "hot currency" speculators are buying is the Vietnamese currency, the hilariously named dong. Investing in the dong seems a much safer investment than the dinar, as the Vietnamese economy is strong and attracting a lot of foreign investment (especially from the US, we love us some dong!). Additionally, there is a lot of worldwide pressure on the Vietnamese to revalue their currency to make it more in line with market realities, similar to the pressure on China. Seems everyone wants a piece of the dong, but only at the right price!
But, the best part about following the movement of the dong (besides being able to say 'movement of the dong') is the ability to have actual quotes like this: (from Bloomberg)
"The dong's weakness since mid-May was an attempt by the central bank to move the currency back to the center of its policy band, Hui wrote in a note to clients today. `Now that intra-band reposition has largely been completed, entry into long dong positions is more favorable.'
Asked to comment, a local Vietnamese economist said, "But, our dong is...so small!"
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