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Member Since: 2/2006Last Seen: 11/07/2009

Kuwait Unpegs Its Currency From the Dollar, Qatar and UAE will probably follow

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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.

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{"commentId":1440479,"authorDomain":"killfile"}

And the petrodollar slips a little further. I wonder if we'll invade

{"commentId":1440479,"threadId":"214719","contentId":"1281678","authorDomain":"killfile"}
  • 1 vote
Reply#1 - Wed Feb 6, 2008 8:08 AM EST
{"commentId":1442465,"authorDomain":"atonhunter"}

We'd have to ask the Saudis and Kuwaitis permission first.

{"commentId":1442465,"threadId":"214719","contentId":"1281678","authorDomain":"atonhunter"}
    #1.1 - Wed Feb 6, 2008 5:54 PM EST
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    {"commentId":1440530,"authorDomain":"mwestenfelder"}

    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.

    {"commentId":1440530,"threadId":"214719","contentId":"1281678","authorDomain":"mwestenfelder"}
    • 2 votes
    Reply#2 - Wed Feb 6, 2008 8:39 AM EST
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