Venezuela 'may swap oil currency'

I wanted to write some words about the dollar, but here first this message from Venezuela:

Venezuela 'may swap oil currency'


After the announcement of Iran to create an oil bourse traded in euro, this is the second large oil exporter to consider such option.

All the analysts and comments look in quite the same direction: this move may bring the central banks (especially in Asia) to shift greater parts of their currency reserves out of dollar into euro.

We'll wait and see...Probably, if large quantities get moved around, it will have impact on the exchange rate, though the central banks will be cautious with their re-positioning and will (try to) do it delicately.

But, what I want to point at, is: the value of a currency is not that much implied by the quasi monopoly role in the world or certain markets as suggested by the comments. We do not trade any commodity in euro or Swiss francs, nor any central bank has reserves in Swedish crones...

If there is to be some down-drift in the dollar's value, it very well may be a overshooting by speculation and will not mirror the strength of the American economy and investment attractivity.

PS: Oh, yes, there was something more: the stocks are falling somewhat... Don't care too much. Although I suppose, we haven't seen the end of the correction now, I will say this: if stocks get cheaper, they get more worth to buy. Don't forget it as sooo many, who do exactly the opposite.



stocks bourse oil currency dollar

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