UAE, Saudi considering to move reserves out of dollar

forex ^ | 3/18/06 | all-Gis-eara

[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

[Windsong]

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.

[lesser_satan]

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

[dennisw]

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

[gotribe]

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.

[starbase]

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.

[AmeriBrit]

"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!

[Echo Talon]

fear? more like intrigued

[sinkspur]

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.

[SAJ]

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!

[afnamvet]

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

[bboop]

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

[starbase]

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!

[Reagan Man]

>>>>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.

[Cobra64]

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

[babygene]

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

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

[boycottliberalhollywood.com]

“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.

[CBart95]

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.

[Kozak]

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?

[Dallas59]

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?

[The Lion Roars]

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