"The Gulf state is among oil producers, including Iran, Venezuela and Indonesia, looking to shift their currency reserves into euros or sell their oil, which is now priced in dollars, for euros. The total value of the reserves held by the U.A.E. is $24.9 billion, Suwaidi said.
The dollar has fallen more than 10 percent this year against the euro.
Part of the reason for the decline is the outlook for slower U.S. growth, which makes the dollar a less attractive investment.
But fears that the dollar's level is unsustainable because of the heavy indebtedness of the United States to other countries is also behind the weakness this year, analysts said.
The shift to euros underscores its growing role as a reserve currency nearly eight years after its establishment. Central banks often keep the details about their currency holdings a secret."
I bet Bush thinks this is the reason:
"Almost all euro bank notes have traces of cocaine, according to a study by German scientists."
2 comments:
About seven or so years ago, I received a long, involved broadcast email from someone I did not know, suggesting (well, shouting was more like it) that this shift from dollars to euros as the basis for trading oil was inevitable. I remember thinking as I read it: either this person is a complete raving lunatic, or I am reading about the future of our oil-dependent economy.
The business about the cocaine is hilarious. Can't you just see Dubya with a rolled-up € note stuck up his nose?
Ha! Yes, I can see him trying to get the last of the powder that way.
I read long while back the same thing about our money, that residue of cocaine can be found in the bills, so I guess it's nothing new.
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