OPEC could switch the pricing of oil from dollars into euros within a decade to combat the decline of dollar, OPEC secretary general Abdullah al-Badri told the Middle East Economic Digest (MEED), a weekly magazine published in London. OPEC is under pressure from its members, who have seen their earnings decline sharply since 2000 due to its use of the dollar. The US currency has fallen 44 percent in value against the euro in that time.
“In oil exchanges in New York, Singapore or Dubai, you can see the currency is the euro or the yen,” Badri said. “It took two world wars and more than 50 years for the dollar to become the dominant currency. Now we are seeing another strong currency coming into the (frame), which is the euro.”
Some OPEC members, notably Iran and Venezuela, have been calling for the group to study the declining dollar’s effect on their economies. Iran has already begun pricing most of its oil in euros. However, pricing of oil in dollars is a sensitive topic. Saudi Arabia’s Foreign Minister Prince Saud al-Faisal warned OPEC late last year that the dollar could plunge if OPEC publicly discussed abandoning it. Badri told reporters in London that several oil exporters were selling in dollars but buying other commodities in euros, calling the latter a strong currency.
http://news.yahoo.com/s/afp/20080209/bs_afp/opeccommoditiesoilcurrency
Dollar Daze
By Bill Donoghue
To earn a 22% gain on your money last year, all you had to do was open a checking account in Canada. A year later, your Canadian dollar-based account would buy 22% more U.S. dollars. The message is loud and clear: When the U.S. dollar is falling in value, don’t invest in dollar-denominated investments if you can avoid them.Last year, the best and easiest way to make money may have been to invest in foreign currency. The U.S. eagle has been trampled by loons, kangaroos and even French poodles. The Canadian dollar (decorated with the loon and called the “loonie”), the Australian dollar and the euro all posted double-digit returns over the greenback in the past 12 months. You don’t have to invest in stock funds. Fidelity Canada Fund earned 35% last year but two-thirds of that gain for U.S. investors was due to the rising value of the Canadian dollar. Canadian investors would have earned 13% in the same fund because the stocks were denominated in loonies.
Internet interruption in the Middle East looks fishy
By John C. Dvorak
There is a substantial event that has effectively been killed by the loss of connectivity: the launch of the Iranian Oil Bourse. There has always been a talk about disrupting commerce by screwing up the internet. We are seeing a proof of concept, whether done on purpose or by accident.
“A marketplace for oil, gas, and various petrochemicals, the Iranian Oil Bourse would trade exclusively in non-dollars and probably substantial negative impact to the U.S. economy and financial system. The bourse was scheduled for launch this week (between Feb. 1 and 11. With complete elimination of Internet connectivity to the country, this launch is now impossible and unlikely to be achievable before month’s end (given the estimate 10-14 days for repairs to fiber-optic cables).”
He cites various articles expressing the mystery behind the cut cables and describing the bourse and its overall threat to the U.S. economy, as well as how the thing could backfire, ruining the Iranian economy. The second bourse article, written in 2005, discusses the early planning for the bourse and suggests or wonders if someone might take some covert actions against it.
Oil bourse was being established on Kish Island, a free-trade zone set up by the Iranians in hopes of creating a cool tourist destination. For an example of what they are up to check out the Web site for one of the new hotels here. There doesn’t seem to be an alternate Into the island other than the cut cables. I attempted to email the three top hotels on the island and all the email bounced. I was also unable to make a telephone call there indicating a large telecommunications failure.
