OPEC Members Move Into Euros From Dollars - IHT

[hatrack]

"Members of the Organization of the Petroleum Exporting Countries have cut the share of their deposits denominated in dollars by more than 13 percentage points in the past three years, mainly to the euro's advantage, according to a report from the Bank for International Settlements. In its quarterly report released on Sunday, the bank, a forum for world central banks, attributed the trend partly to U.S. interest rates' having fallen below those of the euro zone.

The report said that the dollar-denominated deposits of OPEC members had fallen to 61.5 percent of their total deposits in the second quarter of 2004 from 75 percent in the third quarter of 2001.

The share of euro-denominated deposits rose to 20 percent from 12 percent over the same period.

The bank, based in Basel, Switzerland, was cautious about its findings, noting that less revenue from oil seemed to have gone into the international banking system recently, but it added that there had been a "subtle but noticeable" shift in the composition of deposits in the past three years."

EDIT

http://www.iht.com/bin/print_ipub.php?file=/articles/2004/12/06/business/opec.html

[Brundle_Fly]

1. good times ahead n/t

[grasswire]

3. this is it, then

Precisely what economists have feared. We're doomed.

[Endangered Specie]

2. I don't blame them...

hell I think we should seriously consider (on the personal level) putting some of our saving in Euros.

[neweurope]

6. Don't think that will help.

When your economy goes down ours goes down, too.

*sigh*

[PROGRESSIVE1]

4. Oh shit! This is what was predicted all along.

....and does Bushista care, NO!!!!!!!!

:eyes:

[Stinky The Clown]

5. And when we openly hear the term "petro-euros" instead of "petro-dollars"

........ we should start calling friends in Argentina to find out what it feels like to be an industrialized, modern, but fully third world country.

[Bouncy Ball]

7. Barring a few formalities

it feels like we are already there in terms of health care, jobs, the death penalty, etc.

[neweurope]

8. But the Argentinians aren't as free as you are. *g*

[rexcat]

9. It is just a matter of time before they peg oil prices to the Euro...

instead of the dollar. At that point we are screwed and it will be Bush's* and the republicans fault for the major recession that will follow.

[sniffa]

10. no, no

it wiLL be cLinton's fauLt (and john kerry) for the coming impLosion.

[rexcat]

13. NO!

For once the bastard (aka Bush*) is going to take some f--king responsibility for his actions.

[htuttle]

11. We're already seeing some of those effects

Part of the increase in the price of oil is due to the falling dollar. OPEC has already stated that.

I think they informally pegged the price of oil to the euro months ago, and will just keep raising the price in dollars as the dollar's value drops.

[jsquared]

12. The "silver lining" on a dollar crisis is it will tie the US' hands on

initiating more wars, as the country is forced to place attention on economic problems. Also, while GWB may not realize it, the rest of the world, really has the power to "vote" with their pocketbooks regarding Iraq and other policies, by moving to euros as an alternate reserve currency and it looks like he's losing that one. It would be an ironic comeuppanced for an administration that believes it is the center of the world.

[Stinky The Clown]

14. Ironic comeuppance? I'd call it a delicious comeuppance ......

..... and maybe a wake up call to all of the old line republicans who are right now opposed to the administration's fiscal policies but are going along to get along.

[nickshepDEM]

15. Im not as a smart as most of you guys...

So, maybe you could inform me on just HOW significant this is? Does it mean the US is on a downward spiral that can not be reversed?