Bad-Mouthing The Dollar
Two America-haters took turns bashing our currency at a special OPEC meeting in Saudi Arabia on November 17-18. Iranian fascist Mahmoud Ahmadinejad said: "The U.S. dollar has no economic value." And Venezuelan dictator Hugo Chavez stated: "The dollar is in free fall, everyone should be worried about it."
Indeed, the greenback fell to a new low against the euro on November 20. But oil producers are putting pressure on it as well. Iran and venezuela would both like to see oil priced in other currencies, a process that has begun in Iran.
Kuwait has switched from a dollar peg to a basket of currencies, while the United Arab Emirates is considering such a move. Saudi Arabia argues that such shifts put OPEC's billions of dollars of reserves at risk, but it may be forced to at least revalue the riyal.
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Indeed, the greenback fell to a new low against the euro on November 20. But oil producers are putting pressure on it as well. Iran and venezuela would both like to see oil priced in other currencies, a process that has begun in Iran.
Kuwait has switched from a dollar peg to a basket of currencies, while the United Arab Emirates is considering such a move. Saudi Arabia argues that such shifts put OPEC's billions of dollars of reserves at risk, but it may be forced to at least revalue the riyal.
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posted by Bob Moser at
8:30 PM
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