More bad news for the USD, more good news for the NID...

[investindinar]

Kuwait is serious about moving more currency reserves away from the USD....

Here's an interesting new article on the Gulf Cooperation Council's goal of introducing a new currency by 2010.

Link: http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2006/April/business_April14.xml&section=business&col

Here is a quote from the article:

"A delay in the single currency’s introduction could push back the time when the states have to buy more euros, as they’re considering widening the unit’s peg from the dollar to include other currencies such as the euro. Reserves policy: Asked if Kuwait intends to increase its euro reserves, Al Sabah said: “Our policy since the establishment of the Central Bank of Kuwait in 1968 is to have a basket of diversified important national currencies. We have not changed our policy. He declined to comment on the weighting of the various currencies in the basket of reserves."

Interesting takes from this article:

(1) Kuwait and other GCC states are very definitely thinking about moving more of their hard currency reserves away from the USD and towards EUROs.... Bad for the dollar long term.

(2) Kuwait and the other 5 nations in the GCC are very definitely moving forward with the new GCC currency in 2010.... Bullish for the Iraqi Dinar.

Sincerely,

investindinar

[MEALTICKET]

Kuwait is serious about moving more currency reserves away from the USD....

Here's an interesting new article on the Gulf Cooperation Council's goal of introducing a new currency by 2010.

Link: http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2006/April/business_April14.xml&section=business&col

Here is a quote from the article:

"A delay in the single currency’s introduction could push back the time when the states have to buy more euros, as they’re considering widening the unit’s peg from the dollar to include other currencies such as the euro. Reserves policy: Asked if Kuwait intends to increase its euro reserves, Al Sabah said: “Our policy since the establishment of the Central Bank of Kuwait in 1968 is to have a basket of diversified important national currencies. We have not changed our policy. He declined to comment on the weighting of the various currencies in the basket of reserves."

Interesting takes from this article:

(1) Kuwait and other GCC states are very definitely thinking about moving more of their hard currency reserves away from the USD and towards EUROs.... Bad for the dollar long term.

(2) Kuwait and the other 5 nations in the GCC are very definitely moving forward with the new GCC currency in 2010.... Bullish for the Iraqi Dinar.

Sincerely,

investindinar


True but the dinnar is not part of the GCC. Atleast not yet! It would be nice to here Kuwait forgive some of that debt then accept them in the GCC this year. :crying:

[trusty]

Eventually, U.S. households will wake up to the fact that their saving rate is insufficient.
The U.S. household saving rate has been on a downward trend for the past two decades and has accelerated in recent years
If a disorderly adjustment does take place, it will be very costly and disruptive to the world economy. There are two obvious ways in which a disorderly adjustment of global imbalances could happen. One would be an abrupt fall in the rate of consumption growth in the United States, which has supported global economic growth. U.S. consumption growth has to slow because the negative household saving rate is unsustainable. But if it slows abruptly, as it could, especially if there is a bust in the housing market, it will take away a major support from world demand. This would hit growth in other economies, for example in Europe and China, because demand for their exports would fall. In this scenario, there would be a contraction of global demand, and possibly a global recession.
http://www.imf.org/external/np/speeches/2006/040406.htm

Trusty