Oil producers shun dollar

[donsu]

http://www.ft.com/cms/s/277471c2-8889-11db-b485-0000779e2340.html


Oil producing countries have reduced their exposure to the dollar to the lowest level in two years and shifted oil income into euros, yen and sterling, according to new data from the Bank for International Settlements.

The revelation in the latest BIS quarterly review, published on Monday, confirms market speculation about a move out of dollars and could put new pressure on the ailing US currency.

-snip-

The review shows that Qatar and Iran, whose foreign exchange policy has sparked widespread market speculation, cut their dollar holdings by $2.4bn and $4bn respectively.

(maybe Qatar is tired of being under the neo con's thumb)

-snip-

Overall, Opec’s dollar deposits fell by $5.3bn, while euro and yen-denominated deposits rose $2.8bn and $3.8bn, respectively. Placements of dollars by Russians rose by $5bn, but most of their $16bn additional deposits were denominated in euros.
-snip-
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[MOB]

1. Bush wants this

Bush tends to want exchange rates to be lower to boost US trade. Partially a result of the Chinese refusing to play ball and raising the value of the yuan

[Junkdrawer]

2. Be afraid...Be VERY afraid...

Cornered animals do terrible, terrible things...