The CALL to Boycott the US Dollar
This is Wishful Thinking. We Are a Community Who CANNOT Even Boycott the
FAST FOODS & the CARBONISED DRINKS Coming From the US. Some People Would Even
Say That These Types of Foods Are Harmful for Our Health. Do You Think We Will
BOYCOTT the US Dollar. You Gotta Be JOKING. - AB
Saudi Warns Off Currency Speculators
by Reuters on Monday, 07 May 2007
http://www.arabianbusiness.com/index.php?option=com_content&view=article&id=12218:saudi-warns-off-currency-speculators&Itemid=0
Six Gulf countries aiming for monetary union by 2010 are committed to their
dollar pegs, and speculators betting on rising Gulf currencies could get their
fingers burnt, Saudi Arabia's central bank vice governor Muhammad Al-Jasser
said.
In an interview with Reuters on Sunday, Al-Jasser also said he saw no need to
tighten Saudi monetary policy now and added that the country's dollar peg
served the Gulf's largest economy well.Saudi Arabia is one of the six countries
in the Gulf Cooperation Council (GCC) which plans a single currency by 2010.
However, this deadline is in doubt. Markets have been piling pressure on Gulf
currencies, betting that some central banks will allow their currencies to
appreciate against the falling dollar.
Asked what he would say to those speculators betting on higher Gulf
currencies, Al-Jasser said: "Try to find other currencies. GCC currencies are
solid, well managed and (it) would be dangerous for speculators to try to play
them."
Al-Jasser, who is vice governor of the Saudi Arabian Monetary Agency, added
that the six Gulf countries had not discussed the dollar peg at a meeting they
held in April."The course was stayed because it wasn't raised as an issue. The
course is to peg the currencies to the dollar until the launch of monetary
union and the creation of the monetary institution," he said.
"Everybody is still committed to that agreement," said Al-Jasser, who was in
Basel for a bi-monthly meeting of central bank officials at the Bank for
International Settlements.
Speculation of a delay to monetary union gathered momentum after Oman said last
year it had decided not to meet the target. Al-Jasser said: "2010 is getting
closer and closer which makes it much more demanding to complete all the
technical work, but the committees are working hard and we see what we can
achieve before the deadline."
Asked if the countries were committed to the deadline, he said: "Yes."
The dollar's recent slide to a record low against the euro has made some Gulf
Arab imports more expensive, driving up inflation. But Al-Jasser said: "No, we
will not (change the peg) because it continues to serve us well. As long as the
present circumstances prevail, we have no reason or interest in changing it."
"Of course whenever you are pegged to a currency and it depreciates or
appreciates, it raises concerns," he said. "However, in the case of Saudi
Arabia, the dollar happens to be a natural hedge, meaning all of our exports
are denominated in dollars, and more than 70% of imports are denominated in
dollars ... Therefore, the impact is not as significant as one would gather
from reading newspapers."
Saudi Arabia raised benchmark repo interest rates by 30 basis points in
February to 5.5%. "If there is a need for action it will be taken and reported
but it's not something to be discussed a priori. I don't think there is a need
now (to tighten policy)," he said.
AB [EMAIL PROTECTED]
First They Came for the EXTREMIST, FUNDAMENTALIST & MODERATE Muslims. And I
DIDNT Speak Out Because I Wasn't An Extremist, Fundamentalist or a Moderate
Muslim. Then FINALLY They Came for Me the NON-PRACTICING Muslim And NO Muslims
Were Left to Speak Out for ME.
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