End of Petrodollar hegemony
High time for a single GCC currency
By Emilie Rutledge
It seems that America is dependent on oil being invoiced in US$ - so what will happen when Saudi Arabia and its neighbors start to invoice oil in Gulf Dinars?
Iran will be opening a Oil exchange and invoicing in Euros. Venezuela is bartering oil for tradable goods.
From the article:
'Iran's decision to open an oil and associated derivatives market in March 2006 is interesting, not least because it plans to invoice contracts in euros, not dollars.
It is not likely that many energy traders will leave New York or London and set up shop in Tehran, but Iran's move does highlight a rising concern over the long-term value of the dollar.
If the dollar continues to decline against the euro, more states will increase the percentage of euros they hold in their reserves because the euro will be a better store of future wealth, and major oil suppliers will prefer to sell at least some of their oil for euros or currencies other than the dollar.
A strong, independent, single GCC currency is likely to attract increased levels of foreign direct investment to the region and facilitate the invoicing of some oil and gas sales in Gulf dinars.'