Quote:
Originally Posted by Eman - PG
OPEC will not switch out of Dollars overnight for several reasons.
- Most of the OPEC are allies of the US esp the Saudis who control the world's largest oil reserves.
- OPEC countries hold a massive amount of USD. Switching out of the USD would cause a depreciation of the USD thus a depreciation of their own assets.
- US is the world's largest oil "customer".
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Exactly why do you think we have these guys investing so much in our country. The Saudis have a hell of a lot of investment in USD and in the US. In return we have a hell of a lot of investment in Saudi Arabia and several of the other key OPEC member's countries.
The USD has been the most stable currency since WW2 which is why it was chosen to be used for defacto oil sales. The USD is taking a hit right now, but it will eventually be back once our economy comes back around.
Iran wants to talk shit because they think they can. If Iran tried to swap oil to EURO's we would be invading or at the very least placing a trade embargo on them.
Not that I support it, but it's what would happen, just look at Iraq for the example.