
All Persian Gulf countries, excluding Kuwait, decided at their annual summit in Doha in December to peg their currencies in dollar.
Kuwait, however, decided to hook its national currency in a basket of currencies and reduce ties with the greenback.
Probably, Qatar and UAE will cut their links with the dollar.
And the petrodollar slips a little further. I wonder if we'll invade
We'd have to ask the Saudis and Kuwaitis permission first.
Actually, Killfile, Kuwait uses the basket approach for over a year already, it merely decided to maintain that regime in the latest Doha talks.
I've written about this a short while ago:
http://mwestenfelder.newsvine.com/_news/2007/12/13/1161604-how-the-dollar-makes-arabs-worry
From my perspective, I can only hope that the others follow suit and let the Dollar fall, last not least for the sake of peace in the Gulf and falling oil prices (triggered by a US recession). The latter of course would only happen if Japan and Saudi-Arabia come to their senses and de-peg as well.
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