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UAE, Saudi considering to move reserves out of dollar
forex ^ | 3/18/06 | all-Gis-eara

Posted on 03/20/2006 9:41:26 PM PST by STD

UAE, Saudi considering to move reserves out of dollar

WASHINGTON — A number of Middle Eastern central banks said on Tuesday they would seek to switch reserves from the US greenback to euros.

The United Arab Emirates said it was considering moving one-tenth of its dollar reserves to the euro, while the governor of the Saudi Arabian central bank condemned the decision by the United States to force Dubai Ports World to transfer its ownership to a ‘US entity,’ the UK Independent reported.

“Is it protectionism or discrimination? Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the US?” said Hamad Saud Al Sayyari, the governor of the Saudi Arabian monetary authority.

The head of the United Arab Emirates central bank, Sultan Nasser Al Suweidi, said the bank was considering converting 10 per cent of its reserves from dollars to euros.

“They are contravening their own principles,” said Al Suweidi. “Investors are going to take this into consideration (and) will look at investment opportunities through new binoculars.”

The Commercial Bank of Syria has already switched the state’s foreign currency transactions from dollars to euros, Duraid Durgham head of the state-owned bank said. The decision by the bank of Syria follows the announcement by the White House calling on all US financial institutions to end correspondent accounts with Syria due to money-laundering concerns.

Syria’s Finance Minister Mohammad Al Hussein said: “Syria affirms that this decision and its timing are fundamentally political.”-Khaleej Times Online


TOPICS: Crime/Corruption
KEYWORDS: dollarflush
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I hope they do this, because then we don't have to pretend we like them anymore
1 posted on 03/20/2006 9:41:29 PM PST by STD
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To: STD

I wonder if they are going to start charging us billions of dollars a year to use their ports for our Navy.


2 posted on 03/20/2006 9:44:36 PM PST by Echo Talon
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To: STD
...moving one-tenth of its dollar reserves to the euro...
Yeah, supposedly the way to effectively destroy America is by making the Euro king instead of the dollar.
I guess we'll all find out how this affects things if it happens.
3 posted on 03/20/2006 9:46:49 PM PST by philman_36
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To: STD

We need to develop technology where we can just drill serious-deep and suck that sweet crude out from underneath these cavemen.


4 posted on 03/20/2006 9:47:55 PM PST by Spruce (Keep your mitts off my wallet)
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To: STD

bttt


5 posted on 03/20/2006 9:48:21 PM PST by wildcatf4f3 (Islam Schmislam blahblahblah, enough already!)
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To: Echo Talon

Don't worry. We'll survive bucko.


6 posted on 03/20/2006 9:48:34 PM PST by Reagan Man (Secure our borders;punish employers who hire illegals;stop all welfare to illegals)
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To: Echo Talon
I wonder if they are going to start charging us billions of dollars a year to use their ports for our Navy.

Don't know but the UAE moved a 500 million deal to England today. I read it earlier.

7 posted on 03/20/2006 9:48:42 PM PST by jec41 (Screaming Eagle)
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To: STD

This would lower the dollar on world currency markets and place inflationary pressure on our economy.


8 posted on 03/20/2006 9:49:31 PM PST by Jaysun (The plain truth is that I am not a fair man, and don't want to hear both sides.)
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To: STD

Aljazeera.com ?

From their jihad mouth, to Allah`s ears.


9 posted on 03/20/2006 9:49:38 PM PST by Reagan Man (Secure our borders;punish employers who hire illegals;stop all welfare to illegals)
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To: Echo Talon
I wonder if they are going to start charging us billions of dollars a year to use their ports for our Navy.

Billions, eh? Why don't you just put a "WAH" in your sig ET?

Also, time for some math help. Here's a little economics exercise for you; Figure out how much we drop there from all angles. Then report back.

10 posted on 03/20/2006 9:55:05 PM PST by Fruitbat
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To: STD
Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the US?”

You might have a point ahab if US citizens were flying planes into your buildings or blowing themselves up in your cities.

11 posted on 03/20/2006 9:57:00 PM PST by paul51 (11 September 2001 - Never forget)
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To: STD

With so called allies like this, who needs enemies?

Fairweather friends, at most.They don't care which infidel they do business with.


12 posted on 03/20/2006 9:58:17 PM PST by exit82 (Congressional Democrats---treasonously stuck on stupid.)
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To: Fruitbat

Sometimes I wonder if these third world nations would like to live under Iran for a short time, than have them express their anger at the USA.

We would see whom needs whom.


13 posted on 03/20/2006 9:58:20 PM PST by GaryMontana (islam, the Nazis of today must either be destroyed -- or the human race will perish)
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To: STD

When the EURO goes in the tank, we will be laughing our a**es off!


14 posted on 03/20/2006 9:59:49 PM PST by TheLion
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To: Fruitbat
Billions, eh? Why don't you just put a "WAH" in your sig ET?

Also, time for some math help. Here's a little economics exercise for you; Figure out how much we drop there from all angles. Then report back.

Supply & Demand, who else has port facilities in the area that we can use? Answer nobody.

15 posted on 03/20/2006 10:00:17 PM PST by Echo Talon
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To: Echo Talon
I also saw where the Asian pacific countries were meeting to consider converting to one currency. It said the yuan was favored. That included Japan.
16 posted on 03/20/2006 10:00:26 PM PST by jec41 (Screaming Eagle)
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To: STD

Are George Soros and Warren Buffett betting against the dollar again? Maybe they've asked a few friends to help...


17 posted on 03/20/2006 10:00:56 PM PST by LibFreeOrDie (L'Chaim!)
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To: philman_36
Yeah, supposedly the way to effectively destroy America is by making the Euro king instead of the dollar.

Taking money from a productive society and throwing it into a minimally productive society? Businessmen wouldn't do that, pro-terrorist would though.

I think they should take the UN approach. Rant, rave, pretend to pull out their hair until the US fixes things a couple decades later.

18 posted on 03/20/2006 10:03:26 PM PST by lizma
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To: jec41

hmmm


19 posted on 03/20/2006 10:03:29 PM PST by Echo Talon
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To: Echo Talon

Your fear is palpable.


20 posted on 03/20/2006 10:04:15 PM PST by Reagan Man (Secure our borders;punish employers who hire illegals;stop all welfare to illegals)
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To: Spruce
We need to develop technology where we can just drill serious-deep and suck that sweet crude out from underneath these cavemen.

You mean like a fish-hook shaped pipeline underground? Like siphoning someone else's gasoline? LOL

I like the sound of that.

21 posted on 03/20/2006 10:05:05 PM PST by Windsong (Jesus Saves, but Buddha makes incremental backups)
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To: STD

bump for later (MUST...DISPELL...STUPIDITY)


22 posted on 03/20/2006 10:07:11 PM PST by lesser_satan
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To: STD

The game here is for UAE and Saudi to keep your reserves in dollars and we'll protect you. Same as Japan has huge dollar holdings due to cumulative trade deficits but will never dump them or go to the Euro as a reserve currency. So long as it knows we will back them up against China. Taiwan is the same and so is Korea

China is running huge trade surpluses with us and does not want our protection. They're aim is to destroy our dollar protection racket. I have no problem with our dollar diplomacy


23 posted on 03/20/2006 10:09:03 PM PST by dennisw (-Muslim's biggest enemy is the founder of Islam, Muhammad. Muslims are victims of this evil conman-)
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To: STD

This inching to war with the Bush and Clinton buddies in the house of sawed is driving me crazy. Let's just get at it. I hope the next president is a wild man.


24 posted on 03/20/2006 10:11:42 PM PST by gotribe (Just tired of going easy on islam)
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To: STD
This constant currency threat has 2 important characteristics:

1. It's of our own making. It might only have the affect that is sometimes projected because we don't handle our money well. Even if it's painful, it will be much better for us to handle our money well.

2. This can only be used once. After a painful, even traumatic correction occurs, then the situation will be, well, corrected.

So I say bring it on. Hit our currency as hard as you can because we deserve it for being irresponsible, and because the pain will permanently remove this threat in the future.

Of course there's a big if as to whether the effect even takes place.
25 posted on 03/20/2006 10:12:10 PM PST by starbase (Understanding Written Propaganda (click "starbase" to learn 22 manipulating tricks!!))
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To: STD
"The head of the United Arab Emirates central bank, Sultan Nasser Al Suweidi, said the bank was considering converting 10 per cent of its reserves from dollars to euros."





Considering the slap in the face they got from the lying left and the two-faced RINO's I'm surprised it isn't more than 10%. We can only hope and pray they don't retaliate more and evict our military and stop us using their facilities.

What our so called leaders did over the ports deal is going to effect us all for a long time, and the worst is yet to come.........Thankyou Chuckie and Hitlary!
26 posted on 03/20/2006 10:17:34 PM PST by AmeriBrit (AMERICA's WORST ENEMIES! http://media1.streamtoyou.com/rnc/0519RNCNo-1.wmv)
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To: Reagan Man

fear? more like intrigued


27 posted on 03/20/2006 10:18:14 PM PST by Echo Talon
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To: GaryMontana
Sometimes I wonder if these third world nations would like to live under Iran for a short time, than have them express their anger at the USA.

Dubai is not third world, in any respect.

The entire country looks like the strip in Las Vegas.

28 posted on 03/20/2006 10:20:39 PM PST by sinkspur
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To: starbase
At this minute, this is all ''Much Ado About Nothing''. Ol' Bill always could turn a phrase, couldn't he?

I wonder if our self-appointed non-currency-trading ''experts'' here know that, from 1 January this year, EVERY SINGLE ONE of the historically successful so-called ''seasonal'' trades involving USD vs some other currency ... has been profitable.

In plain English -- ain't nothin' changin', at least right now.

BTW, I don't ''wonder'' at all. Unless one follows the forex mkts daily, one cannot have a clue.

Just FYI, do you know the forex relationship that's broken down BADLY this year? It's GBP vs JPY and GBP vs EUR. The Brits are (not terribly surprisingly) on the ropes as regards their currency.

Some time, if you like, I'll offer some thoughts on the subject.

Good trading to you, and FReegards!

29 posted on 03/20/2006 10:22:05 PM PST by SAJ
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To: STD

Odd that this speculation piece is from Forex. Any other sources that don't have an axe to grind?


30 posted on 03/20/2006 10:24:21 PM PST by afnamvet
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To: STD

They'll love euros, too. When the EU totally votes itself out of existence, in another few years.


31 posted on 03/20/2006 10:25:24 PM PST by bboop (Stealth Tutor)
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To: SAJ
Some time, if you like, I'll offer some thoughts on the subject.

Good trading to you, and FReegards!


Thanks much. And whenever you want to share some thoughts on the subject, fire away!
32 posted on 03/20/2006 10:31:10 PM PST by starbase (Understanding Written Propaganda (click "starbase" to learn 22 manipulating tricks!!))
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To: AmeriBrit
>>>>Considering the slap in the face ....

Spoken like a good Euro-socialist.

The House committee voted 62-2 to oppose the Dubai deal. 70% of Americans opposed the Dubai deal. Most conservatives said to Bush, enough already.

Bush was defiant, even arrogant at first. In the end Bush caved. And DPW/UAE/Dubai cried uncle. And some Freepers had egg on their faces for siding with the "jihadists".

In the end, America won.

33 posted on 03/20/2006 10:33:38 PM PST by Reagan Man (Secure our borders;punish employers who hire illegals;stop all welfare to illegals)
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To: Spruce

We've been drilling horizontal wells for years. Distance is the issue in hitting any given reserve.


34 posted on 03/20/2006 10:33:56 PM PST by Cobra64
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To: sinkspur

"Dubai is not third world, in any respect."

It is however, the "tird" world...


35 posted on 03/20/2006 10:46:30 PM PST by babygene (Viable after 87 trimesters)
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To: STD
“They are contravening their own principles,” said Al Suweidi. “Investors are going to take this into consideration (and) will look at investment opportunities through new binoculars.”

Hopefully, Americans take a look at this through ”new binoculars“ and see that neither Saudi Arabia nor the UAE are our friends. Allies perhaps, but friends? Nope. Their game plan? Sell us oil at extravagantly inflated prices, then purchase our land right out from under us. Hold our economy hostage and threaten to move their money over to the Euro. Friends? Riiiiiiiight.

36 posted on 03/20/2006 10:52:53 PM PST by boycottliberalhollywood.com (www.boycottliberalhollywood.com - www.twoamericas.us)
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To: boycottliberalhollywood.com

That seems like a "full plate of worldly concern" right there.

Do you focus on Hollywood for recreational purposes?

The deplorable ignorance of our duplicitous world could surely use a champion of your prowess to advance the cause of general awareness.


37 posted on 03/20/2006 11:06:47 PM PST by CBart95
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To: Echo Talon
Supply & Demand, who else has port facilities in the area that we can use? Answer nobody.

Who else has the military to prop up their flabby lazy asses and protect the commerce that goes in and out of their little sheikdoms? Answer nobody.

And in 6 months those same idiots are going to be looking at a nuclear armed Iran bent on creating a Shia Muslim Caliphate. Guess who they will be crying to protect them then?
38 posted on 03/20/2006 11:12:41 PM PST by Kozak (Anti Shahada: " There is no God named Allah, and Muhammed is his False Prophet")
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To: STD
So Europe is basically a stable collection of countries with a stable currency and has a future without major conflicts? Maybe the Arabs see a different future Europe? One without any development in alternative energy? Maybe the US has something on the energy horizon that will drastically reduce oil consumption and the Arabs know this? Maybe they trust the Europeans to protect/negotiate them from China when China's hunger for oil grows?
39 posted on 03/20/2006 11:12:42 PM PST by Dallas59 (MOHAMMED LIED-PEOPLE DIED)
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To: STD

the sooner we stop financing these dacoits the better. alternate sources now!!


40 posted on 03/20/2006 11:13:50 PM PST by The Lion Roars
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To: Kozak

so, if they asked us to pay for the use of their ports i bet we would pay.


41 posted on 03/20/2006 11:14:48 PM PST by Echo Talon
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To: Echo Talon
"Supply & Demand, who else has port facilities in the area that we can use? Answer nobody."




Don't hold your breath waiting for an intelligent answer ET because they don't have one. They don't have the ability to tie it all in with our militaries use of the UAE ports.
42 posted on 03/20/2006 11:18:06 PM PST by AmeriBrit (A must see: http://www.iraqitruthproject.com/flash2.html)
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To: The Lion Roars
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 30% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. cia.gov
43 posted on 03/20/2006 11:21:11 PM PST by Echo Talon
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To: STD

I don't know foreign exchange economics well, but doesn't this make sense if we prevent them from investing in American assets? The restrictions we place should create a balance-of-payments surplus for them with us, meaning they will have less need for a reserve of US dollars. But many here will probably treat this as a hostile action.


44 posted on 03/20/2006 11:22:57 PM PST by Young Scholar
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To: The Lion Roars
Compare that to Kuwait Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income.
45 posted on 03/20/2006 11:23:31 PM PST by Echo Talon
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To: Echo Talon
and Saudi Arabia The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector.
46 posted on 03/20/2006 11:25:49 PM PST by Echo Talon
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To: AmeriBrit

So true. My brother works in Dubai. He was pretty horrified at how all this worked out. I guess it takes something like this to show the general ignorance of the American population as to foreign affairs and basic geography. We might have to eat some crow on this deal and how it was handled.


47 posted on 03/20/2006 11:28:15 PM PST by catholicfreeper
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To: AmeriBrit

I know, still fun to play with them. :)


48 posted on 03/20/2006 11:28:39 PM PST by Echo Talon
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To: Echo Talon

Fine. Let them pay us a toll on every barrel of oil for patrolling the Gulf, and when they need us to protect them from the Iranians, we should stick it to them for the service.


49 posted on 03/20/2006 11:34:51 PM PST by Kozak (Anti Shahada: " There is no God named Allah, and Muhammed is his False Prophet")
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To: Kozak

why would they pay us to patrol the Gulf? We do that on our own.


50 posted on 03/20/2006 11:49:33 PM PST by Echo Talon
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