UAE, Saudi considering to move reserves out of dollar

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

[Echo Talon]

Given the situation in Iran, we could very well have port facilities on the Iranian side of the straight by next year.

Maybe you don't understand just how big of a construction project those ports in the UAE were. Also, the US needs the straight to be open because of Iraq. Like I said earlier, it's in our interest.

[Echo Talon]

United Arab Emirates Facilities
Intensive use has been made of commercial ports, including about 200 calls a year at the Jebel Ali port in the United Arab Emirates. Other important ports [Mina] in the UAE are Abu Dhabi, Al Fujayrah, Khawr Fakkan, Mina Khalid, Mina Rashid, Mina Saqr, and Mina Zayid. The Fujairah to Jebel Ali land link is the Navy’s logistics pipeline to the Gulf should the Strait of Hormuz be closed. Cargo unloaded at Al Fujairah, on the Gulf of Oman, can be subsequently transported via highway to destinations on the Arabian Gulf and hence bypass the need for transit through the Strait of Hormuz.

[tyrejones]

I don't think they need to ask for help to watch the dollar go down. The record high debt and mounting deficits combined with no thought by the current administration to change these policies is frightening holders of dollar reserves worldwide. Soros and Buffett are merely reading the tea leaves, and correctly, in my humble opinion...

[tyrejones]

While Europe is no model of productivity (witness the riots in France these days), the US' proclivity to spend, at both a personal and government level, makes our currency less valuable over time. Combined with the geopolitical foulups by Bush makes the dollar even less attractive. Watch out when the oil producers start using the euro for all oil transactions in the future, then see what the dollar does...

[Dog Gone]

Combined with the geopolitical foulups by Bush makes the dollar even less attractive.

Could you give us a list of those foulups?