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Oil trading to remain in dollar – Kuwait minister

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Littlekracker is become a great news digger....the following comment after this article is very interesting:

Oil trading to remain in dollar – Kuwait minister

LONDON - Kuwait’s finance minister said on Thursday that oil trading will remain in US dollars, the latest denial of a report this week of a move to replace it with a basket of currencies.
The dollar has been undermined by the US trade and budgetary deficits, and its role as the globe’s top reserve currency has come under question. Oil exporters have sometimes complained dollar weakness undermines the purchasing power of oil revenues.
On Thursday, the dollar fell against a basket of currencies, while oil rose, trading above $70 a barrel. The greenback had also weakened after the Independent’s report.
Saudi Arabia and some other Gulf states peg their currencies to the dollar.
But Kuwait links its currency, the dinar, to a basket of currencies. It broke ties with the dollar in 2007 and dropped the peg to help fight inflation as it pays for a third of imports in euros.

Kuwait has never said what the components of the currency basket are. – Reuters

but analysts believe it is dominated by the dollar.
The finance minister added that Kuwait will keep the oil price assumed in next year’s budget the same as the current year at $35 a barrel, as it was unclear if current levels will persist.
“We are not sure yet that prices will continue at this level,” he said. The minister was in London to sign a trade agreement with Britain. - Reuters


Following this article is the following comment posted by a James:

Why is Revaluation of Iraqi Dinars Important? | James posted...
Kuwait's economic power will be reduced eventually in the near future when revaluation plan of Iraqi Dinar may be delayed further. Just fancy that when more and more foreign oil buyers would go to Iraq for cheaper oil prices after the contracts with Kuwait oil suppliers expired soon. Moreover, Iraq's employment agencies in Iraq and in other well-developed countries may start to outsource business on behalf of big companies all over the world by the use of their cheaper skilled labors. Together with China's cheap skilled labors, they shall plan to destroy the entire global economy just to meet their aims to rule the business world alone. Do you remember the tragic event of the World War II between 1937 to 1945 when German Invasion attacked the west whilst Japanese invasion attacked the east, simultaneously, thereby causing the overly-stressful American and British Armies to split up to defend both the west and the east? Do we want to see history repeat itself in a different picture but for the same reason of destroying one another to be on top of the world. Business wars are no joking matters to breadwinners. Do not be complacent and procrastinate. Someone must do something to revalue Iraqi Dinars real fast before it is too late to control their business invasions throughout the west and the east with China I have studied for years how China wanted to use her business strategies to conquer the business world and that Iraq might be next to join China as her right hand man to fight the future business wars together. Please rethink: Prevention is always better than sorry!

Sincerely,
A concerned retrenched Singaporean with some common sense

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