First Iraq did it, then Syria tried it and OPEC paid attention. Now Indonesia's state-run oil and gas concern is talking about dropping the US dollar as it's currency of settlement, in favour of the Euro.
In most cases, what Indonesia does, Malaysia mimics. What is one by Indonesia and Malaysia, Singapore will consider. If Indonesia, Malaysia and Singapore were to all run over to the Euro, the snowball effect could be substantial.
Economists have estimated that if OPEC were to drop the US$ in favour of the Euro or any other currency, it could devistate the dollar's viability, leaving a 20% to 40% drop in value against the currency basket virtually overnight. Such a move by the lead-in countries to the Southeast Asian economy could also have a similar, if not so drastic, effect.
Full story is here.
Certainly food for thought.
Phaedrus
In most cases, what Indonesia does, Malaysia mimics. What is one by Indonesia and Malaysia, Singapore will consider. If Indonesia, Malaysia and Singapore were to all run over to the Euro, the snowball effect could be substantial.
Economists have estimated that if OPEC were to drop the US$ in favour of the Euro or any other currency, it could devistate the dollar's viability, leaving a 20% to 40% drop in value against the currency basket virtually overnight. Such a move by the lead-in countries to the Southeast Asian economy could also have a similar, if not so drastic, effect.
Full story is here.
Certainly food for thought.
Phaedrus
