Saudi, UAE Central Banks Seek to Dump Dollars for Euros

[Hollywood]

WASHINGTON — A number of Middle Eastern central banks said on Tuesday they would seek to switch reserves from the US greenback to euros.
The United Arab Emirates said it was considering moving one-tenth of its dollar reserves to the euro, while the governor of the Saudi Arabian central bank condemned the decision by the United States to force Dubai Ports World to transfer its ownership to a ‘US entity,’ the UK Independent reported.

“Is it protectionism or discrimination? Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the US?” said Hamad Saud Al Sayyari, the governor of the Saudi Arabian monetary authority.

The head of the United Arab Emirates central bank, Sultan Nasser Al Suweidi, said the bank was considering converting 10 per cent of its reserves from dollars to euros.

“They are contravening their own principles,” said Al Suweidi. “Investors are going to take this into consideration (and) will look at investment opportunities through new binoculars.”

The Commercial Bank of Syria has already switched the state’s foreign currency transactions from dollars to euros, Duraid Durgham head of the state-owned bank said. The decision by the bank of Syria follows the announcement by the White House calling on all US financial institutions to end correspondent accounts with Syria due to money-laundering concerns.

Syria’s Finance Minister Mohammad Al Hussein said: “Syria affirms that this decision and its timing are fundamentally political.”-Khaleej Times Online

http://mensnewsdaily.com/2006/03/21/saudi-uae-central-banks-seek-to-dump-dollars-for-euros/

[BIG WAVE]

WASHINGTON — A number of Middle Eastern central banks said on Tuesday they would seek to switch reserves from the US greenback to euros.
The United Arab Emirates said it was considering moving one-tenth of its dollar reserves to the euro, while the governor of the Saudi Arabian central bank condemned the decision by the United States to force Dubai Ports World to transfer its ownership to a ‘US entity,’ the UK Independent reported.

“Is it protectionism or discrimination? Is it okay for US companies to buy everywhere but it is not okay for other companies to buy the US?” said Hamad Saud Al Sayyari, the governor of the Saudi Arabian monetary authority.

The head of the United Arab Emirates central bank, Sultan Nasser Al Suweidi, said the bank was considering converting 10 per cent of its reserves from dollars to euros.

“They are contravening their own principles,” said Al Suweidi. “Investors are going to take this into consideration (and) will look at investment opportunities through new binoculars.”

The Commercial Bank of Syria has already switched the state’s foreign currency transactions from dollars to euros, Duraid Durgham head of the state-owned bank said. The decision by the bank of Syria follows the announcement by the White House calling on all US financial institutions to end correspondent accounts with Syria due to money-laundering concerns.

Syria’s Finance Minister Mohammad Al Hussein said: “Syria affirms that this decision and its timing are fundamentally political.”-Khaleej Times Online

http://mensnewsdaily.com/2006/03/21/saudi-uae-central-banks-seek-to-dump-dollars-for-euros/

I missed this one HW,
This is big news and the implications could be catastrophic to the USD. Maybe its time the CBI rethink its reserves if they haven't already.


JMHO,
Bw

[FREEON]

What will really happened in the coming months for the US$. file:///C:/DOCUME%7E1/JOHNHO%7E1/LOCALS%7E1/Temp/moz-screenshot.jpg Please refer to the following link.

http://asiachart.com/world.html

So, dinar investors and American, have no fear!

[FREEON]

US$ Vs. Euro.

http://asiachart.com/world.html

[tattatu]

your Dinar is a hedge on the Dollar, its revaluation probably depends more on the Dollar falling/strengthening -- since trade is a larger factor, than bank reserves. Either way would still be bad news for the dollar (Goldenlox effect).

Also, your trendlines go back to 1995 (you are relying on a gap that occurred over 10 years ago) -- and so far technicians have been completely wrong with regard to timing and support. The XAU is a corrupted index from forward selling (no one wants gold to go up NOT YET!).

There is nothing on my radar that points to gold dropping (i wish it were so --I've pulled back just to avoid crashing and regret it, but I cant complain -- I like safe. Don't forget there are at least seven different ways of using derivatives to trade commodities -- some super leveraging going on and so far gold has only moved about $10.

If Bush cant end this war soon, we dont get a balanced budget, B. raises rates, we hit recession, and then comes a tardy devaluation (created by years of gov. denial and mismanagement). There's not much wiggle room and I cant deny your trend line, but the bigger the boat, the harder it is to rock --and the big boys are rocking hard right now, but without much effect...

Now back to my taxes.

[tattatu]

silver yesterday 10.22 today 10.64
gold yesterday 550 today 560.

I dont have the latest numbers on open interest -- I've read somewhere that about $1.5 trillion is betting gold will go down. There's a miner that went busted this week in Australia -- gold vein was too narrow for their machinery and they couldnt deliver enough gold to the bank. Gold also gets borrowed to buy houses in some parts of the world (talk about missing house payments.)


Why didnt I learn about all this last year? :crying:

[tattatu]

This is an old idea, but trend reversals (like triple tops) need confirmation. Bond yields should respond inversely to momentum increases in gold prices (inflation expectations) and they are. An inflation-indexed 20-year treasury yield is 2.16% (there is no wiggle) and the yield curve is getting steeper, this can only mean a recession is very close.

The dollar will have to be devalued, just not on this President's watch.

I'm looking at a table of discount rate lows and time between s&p price peaks -- the average time between rate low and price peak is 35 months. We've had 14 price hikes = 52 months. The last time that occurred was August 1924 and 61 months later came September 1929. FDR devalued the dollar 40% in 1934.:rolleye03

[tattatu]

my mistake 3 x 14 = 42 mos. oops so add another 10 mos. we're still overdue for a correction. 16 mos = July 2007