US Dollar Dumpers

[Kimosabi]

The purpose of this thread is track the countries which are dumping their US Dollar Peg.

Syria and Kuwait have both announced that they will be dumping the US dollar Peg, and I think this trickle may well turn into a flood.

Syria to switch peg from dollar to SDR

Agencies

Abu Dhabi: Syria will link the pound to International Monetary Fund's special drawing rights (SDR) in July, abandoning the peg to the US dollar, the central bank governor said on Monday.

"We will do it now in July," Governor of the Central of Syria Adeeb Mayaleh told reporters in Abu Dhabi. Mayaleh said in October that the change would take place in the first half of 2007, but "we needed some time so we slightly delayed it".

Effective January 1, 2006, the IMF set weightings for the SDR at 44 per cent US dollars, 34 per cent euros, and 11 per cent each of yen and the British pound.

Asked about the weighting of the dollar in the Syrian currency reserves, he said: "There will be no change for the moment and we will keep it at 50-50, but we might change it later on depending on any new development," he said.

http://www.gulf-news.com/business/Banking_and_Finance/10129965.html

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[SIZE=+1]Kuwait abandons US dollar currency peg[/SIZE]

By Simeon Kerr in Dubai

Kuwait on Sunday removed its currency peg to the US dollar, throwing plans for a Gulf currency union by 2010 into doubt and raising the prospect that other oil-producing states might abandon long-held dollar pegs.

Sheikh Salem Abdelaziz Al Sabah, governor of the Central Bank of Kuwait, told the official Kuwait news agency that the decision had been made owing to the "detrimental effects of the pegging system to the national economy".

Since late last year, Kuwaiti officials have hinted that the country would revert to a basket of currencies to prevent the sliding dollar increasing the cost of imports, which has stoked inflation to more than 4 per cent, double the historic average. This has encouraged speculators to plough billions of dollars into the dinar over the past few months, betting that the central bank would allow the dinar to appreciate.

On Sunday, the dinar traded up 0.4 per cent as the central bank replaced the peg with a basket of undisclosed currencies. The central bank had allowed the currency to vary up to 3.5 per cent from the peg, but the dinar had been at the top end of the approved trading band for a year owing to the continuing weakness of the dollar and the strength of Kuwait's oil-driven economy.

The dollar is expected to make up about 75-80 per cent of the new basket, reducing the third largest Arab oil exporter's exposure to the weakening dollar.

Kuwait dropped its currency basket in 2003, adopting a dollar peg as part of the Gulf Co-operation Council countries' drive to create a unified economic block with a single currency by 2010. But doubts over the ability of the GCC economies to harmonise have arisen, with one member of the six-nation council, Oman, saying it would not meet the convergence criteria.

"There have already been a lot of question marks over currency union taking place; this raises an additional one," said Simon Williams, an economist with HSBC in Dubai.

Kuwait's move may come as a surprise to other GCC states, such as Saudi Arabia and Bahrain, which have been repeating their commitment to the peg in recent weeks, saying that any revaluation should be agreed collectively by the GCC.

Mr Williams did not believe other GCC states would follow suit on revaluation quickly, as these countries have clung to dollar pegs since the early 1980s.

But other GCC states – Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Oman – are studying the move as an option to mitigate dollar weakness.

http://uk.biz.yahoo.com/20052007/399/kuwait-abandons-dollar-currency-peg.html

I don't know about the rest of you but I am starting to see some very ominous storm clouds on the horizon.

I think it might be time for that little trip to the Perth Mint I've been talking about.

 

[>Apocalypto<]

The purpose of this thread is track the countries which are dumping their US Dollar Peg.

Syria and Kuwait have both announced that they will be dumping the US dollar Peg, and I think this trickle may well turn into a flood.


I don't know about the rest of you but I am starting to see some very ominous storm clouds on the horizon.

I think it might be time for that little trip to the Perth Mint I've been talking about.

Ha ha bring it on I say!

I am long on Gold and only looking to add!

:bazooka:

 

[explod]

Agree with the above, in fact as we contemplate the subject the US dollar is showing further weakness today and in Euro trading at this time. Have also been long gold for some time. Check out comentaries of James Turk, (via Google) who is bullish on gold, bearisn the dollar, but not over the fence like some. A diversion such as an attack on Iran may not surprise but in the end the currency will fall under the burden of debt alone IMHO. A very good thread over the last week(on ASF) if you have not seen it, particularly in regardto the power of Central Banks ...."Hypothetical - The Economy Goes Bust"

 

[purple]

well, KimonoWasabi, oops, Kimosabi, I'm all for dropping pegs to the USD. I'm working in the UAE and the currency here is still pegged to the USD, and I find that plain irritating.

that's because I'm sending money back to Australia, and with the weak USD and the red hot raging AUD, I'm losing hundreds with each money transfer, and the loss keeps increasing as we see our AUD growing stronger and stronger.

Give the Peg the Leg I say!

 

[Smurf1976]

IMO the question is "when" rather than "if" the USD is toast.

 

[prana]

Time to reincarnate an old thread and some old posts. Looks like the SDR will be given a second life, backed not by gold but a basket of currencies so they can practise orgies of quantative easing.