Not a member yet?
|
Ziad's review
Investment Sector: Recreation Submitted by Ziad 
, President & CEO
at Blackhawk Partners, Inc
about 1 year ago Add Tag |
Iranian President Mahmoud Ahmadinejad said Sunday that OPEC's members have expressed interest in converting their cash reserves into a currency other than the depreciating U.S. dollar, which he called a "worthless piece of paper."
His comments at the end of a rare summit of OPEC heads of state exposed fissures within the 12-member cartel—especially after U.S. ally Saudi Arabia was reluctant to mention concerns about the falling dollar in the summit's final declaration.
The hardline Iranian leader's comments also highlighted the growing challenge that Saudi Arabia, the world's largest oil producer, faces from Iran and its ally Venezuela within the Organization of Petroleum Exporting Countries.
He blamed U.S. President George W. Bush's policies for the decline of the dollar and its negative effect on other countries.
"All participating leaders showed an interest in changing their hard currency reserves to a credible hard currency he said. "Some said producing countries should designate a single hard currency aside from the U.S. dollar ... to form the basis of our oil trade."
Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned oil producers because it has contributed to rising crude prices and has eroded the value of their dollar reserves.
Iran and Venezuela have proposed trading oil in a basket of currencies to replace the historic link to the dollar, but they had not been able to generate support from enough fellow OPEC members—many of whom, including Saudi Arabia, are staunch U.S. allies.
Where do you guys think this is headed?
Your feedback is greatly appreciated
Thanks for your consideration
Did you find this article useful?
