Syria switches to euro amid confrontation with US

[AGENDA21]

Syria has switched all of the state's foreign currency transactions to euros from dollars amid a political confrontation with the United States, the head of state-owned Commercial Bank of Syria said on Monday.

"This is a precaution. We are talking about billions of dollars," Duraid Durgham told Reuters.

http://news.yahoo.com/s/nm/20060213/pl_nm/syria_us_forex_dc_2

[phantom power]

1. Hmm. Rattling the economic sabre.

A move toward trading oil in euros? That would be a real weapon of mass destruction.

[RaleighNCDUer]

2. Syria has no oil. It only has pipelines.

I think it's more that they are expecting a conflict, and when that conflict happens they don't want to see their assets frozen by the US - so they take all their money out of the US. Any sanctions that the US wants to impose they'll have to convice the EU of the necessity.

A prudent move.