Merrill sees U.S. giving nod for Gulf FX change

[flashl]

Source: Reuters

DUBAI (Reuters) - Merrill Lynch & Co said the United States has effectively given Gulf Arab oil producers the go ahead for making changes to their dollar-pegged foreign exchange policies, by recognizing inflation as a problem.

In a report entitled "U.S. Green Light for the GCC", the U.S. investment bank said the United Arab Emirates and Qatar will probably move to a currency basket in the next few months, with their respective currencies appreciating 5 percent before the end of the year.

Saudi Arabia is unlikely to follow until late next year, Merrill said in the report received on Sunday.

Citing a U.S. Treasury report to Congress that for the first time mentioned currency and inflation issues in the six-member Gulf Cooperation Council, Merrill said the United States government had become more confident about the outlook for the dollar and therefore did not necessarily need Gulf support for its currency.

Reuters

Read more: http://www.reuters.com/article/ousiv/idUSL2565817720080525

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If only Iraq had waited to change its currency. So, do this mean that there is no longer a need to invade Iran?

[Arctic Dave]

1. I think this is effectively the last nail in the coffin.

We may just look back on the last couple economical years as the good ol days. Our monetary value is going to take a hit just from the mentioning of this, much less when they actually implement the policy. Hyper-inflation here we come. We are going to become the USSR circa 1990.
I'm getting a really bad "gut" feeling about this.

[truedelphi]

4. The Brazilians ecnomists were already laughing their butts off at us

Brazil took correcting inflationary policies as their number one problem.

They now rely on ethanol, for every road vehicle in their country. And the ethanol is created from the waste end of the sugar cane.

Mean while the American public is mis-educated abt ethanol, thinking it drives up food prices. It does NOT do that if done correctly. We should beusing the corn husks and the cob, not the kernel for our ethanol.

But in this country, when is the last time anyone has done anything correctly.)

[TroubleMan]

2. Bye bye dollar.

Wish we still had our manufacturing base, then this would be a good thing.

[UpInArms]

3. have I said how very much I hate this mal-administration lately

well, if not,

I cannot express the disgust that I have for the people that have taken the United States of America to the edged of the abyss and pushed it over.

May you rot in the hell that the xtians believe exist.

[skoalyman]

5. And so

it begins :scared: :scared: