Reply #14: ... err... that would be Iran

[UpInArms]

Iran cuts US dollar reserves

http://www.iranmania.com/News/ArticleView/Default.asp?NewsCode=50889&NewsKind=Current%20Affairs

Tehran has cut the share of dollars in its foreign reserves to a minimum, about 20%, as it seeks to hold less of the US currency in response to hostility from the United States, Ebrahim Sheibani, the country's central bank chief said, Reuters reported.

Sheibani, speaking to Reuters on a visit to Malaysia, also said Iran's economy can withstand UN sanctions and the country has enough foreign reserves to handle any major shocks.

"In dollars now, it is at a minimum level, maybe around 20% because we need to keep that," Sheibani said in an interview on the sidelines of an Islamic finance conference.

The United Nations imposed new sanctions on Iran on Saturday because of Tehran's refusal to agree to US-led demands to halt its nuclear programme.

The sanctions target Iranian arms exports and 28 Iranian individuals and entities, and there is the threat of wider sanctions if Iran does not comply within 60 days.

Sheibani described the new sanctions as largely symbolic and said they posed little threat to Iran's oil-led economy.

"I do not think that there is any, or there will be any, effect or adverse effect on Iranian economy because the new sanctions are limited to some areas, which are not much related to our economy," he said.

He did not give a total reserves figure but said they stood at a record high. Asked if they were enough to cope with any major shocks, he added: "We can service our debt very well. Our debt-service ratio is very good and so there is no reason for us to worry about that at all."

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but other countries are probably not far behind on dumping the dollar -

The $64,000 question is how long the pound can remain above $2

http://news.independent.co.uk/business/news/article2461480.ece

Book your trip soon, was the advice yesterday to shopaholics planning a break in New York for some serious retail therapy.

Currency analysts said that, while sterling could race to $2.05 in the next few weeks, the exchange rate was likely to slide back below two-to-one by June. They said dwindling fears about rising UK interest rates and growing confidence about the US outlook would soon see the pound back-pedaling against the dollar.

"Sterling will remain well supported going into the Bank of England's next interest rate meeting, but if there's a hint that the expected hike is the last for a while, or that the Monetary Policy Committee's work is done, it will start unwinding," said Paul Mackel, currency strategist at HSBC.

"I don't think investors are trying to build long cable (sterling/dollar) positions - it's quite lofty at these levels. We retain our forecast of $1.97 in three months' time."

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