Tuesday, Dec 15, 2009

Dollar takes another bashing

Telegraph: Gulf petro-powers to launch currency in latest threat to dollar hegemony

The Arab states of the Gulf region have agreed to launch a single currency modelled on the euro [does that make Dubai the new Greece?], hoping to blaze a trail towards a pan-Arab monetary union. The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they have financial clout equal to that of China. The Gulf currency – dubbed “Gulfo” – is likely to track a global exchange basket and may ultimately float as a regional reserve currency in its own right. “The US dollar has failed. We need to delink," said the chief executive of Bahrain’s Gulf One Investment Bank.

Posted by drewster @ 11:53 PM (1537 views)
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1. Mustafa said...

It sounds as if it is unlikely this will come about, let alone be a serious threat to the dollar. Leaving aside the petty rivalries and jealousies which dominate Arab politics (the current proposal is really for a greater Saudi Arabia, plus various small satellite states), all these nations rely almost entirely on oil exports which leaves their economies fragile.

Does anyone seriously think a bloc with a combined GDP smaller than that of Spain is really going to rival the might of the dollar and euro?

Wednesday, December 16, 2009 01:14AM Report Comment

2. crunchy said...

Techieman, you really need to get 'ahead' of the time. The $ collapse? Not yet, but when they are ready.

Riddles=Money. You would'nt understand anyway Elliott! : ) Le Crunch xxx

Wednesday, December 16, 2009 09:45AM Report Comment

3. crunchy said...

War, what is it good for? Have a nice day tech!

Wednesday, December 16, 2009 09:51AM Report Comment

4. crunchy said...

http://www.youtube.com/watch?v=7CUYvWTd6oA Tech, you might understand this now! lol

Wednesday, December 16, 2009 10:25AM Report Comment

5. mountain goat said...

You should realize that the dollar is in for a significant rally now.

Most Gulf states are dictatorships ruled by family dynasties. Trust them if you like, I bet they don't trust each other.

Wednesday, December 16, 2009 11:45AM Report Comment

6. inbreda said...

Crunchy - have you got any idea of the damage you must be doing to your liver getting this p1ssed this early in the day?

Wednesday, December 16, 2009 12:18PM Report Comment

7. crunchy said...

5. inbreda... That's just fun and I'm sure tech loves it.

This is what I get p1ssed about http://www.youtube.com/watch?v=KvufOvneJMk


Wednesday, December 16, 2009 01:09PM Report Comment

8. matt_the_hat said...

If this story has any element of truth to it expect a big crator where the middle east used to be

Wednesday, December 16, 2009 01:29PM Report Comment

9. alan said...

Creating a new currency won't happen before Christmas or for many Christmasses to come.

The Saudis, Qataris and Kuwaitis do not have a track record of economic co-operation and I feel this is just a bit of wishful thinking - the kind of article which can be slipped in over the holidays when no other economic news is coming out.

Yes, a lot of people are wanting to get away from the dollar as a reserve currency - doing something about it doesn't seem likely. Arabs are still blowing each other's mosques to pieces, so their only unity is in anti-Americanism, isn't it?.

Wednesday, December 16, 2009 02:16PM Report Comment

10. crunchy said...

7. War, what is it good for? Nobel Peace Prize Obama and his pre-election peace promise is increasingly becoming the biggest of his many 'ongoing' lies.

Oh how I wish 'Gardenet' was still here or looking on. I hope he heeded my one of many warnings and did not misunderstand my intention as so many do. As Krusty would say Location, location.

It was money for old rope anyway. Speaking of old rope, you were too early Saddam.

Wednesday, December 16, 2009 02:35PM Report Comment

11. This comment has been removed as it was found to be in breach of our Blog Policies.


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