the visible hand

it is the theory which decides what can be observed – einstein

Gulf petro-currency latest threat to dollar hegemony

Posted by ecoshift on December 16, 2009

Gulf petro-powers to launch currency in latest threat to dollar hegemony – Telegraph

“The Gulf monetary union pact has come into effect,” said Kuwait’s finance minister, Mustafa al-Shamali, speaking at a Gulf Co-operation Council (GCC) summit in Kuwait.

The move will give the hyper-rich club of oil exporters a petro-currency of their own, greatly increasing their influence in the global exchange and capital markets and potentially displacing the US dollar as the pricing currency for oil contracts. Between them they amount to regional superpower with a GDP of $1.2 trillion (£739bn), some 40pc of the world’s proven oil reserves, and financial clout equal to that of China.

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