|02-16-2006, 10:48 AM||#2|
Self Appointed Expert
Join Date: Aug 2003
"However, the biggest change has to come next month. On March 20, 2006, the Iranians want to start an oil bourse in Teheran, with prices in euros.
This can have big effects on the exchange rate between dollars and euros. If the oil price in euros gets lower than the oil price in dollars, there will be a rush on euros. And if it the oil price in euros gets higher than its price in dollars, there will be a rush on dollars.
So, basically Teheran gets an influence in the exchange rate of the currencies, which means risks for both the US and Europe. Today Teheran is pressured and threatened by both. Fluctuations in exchange rates might also bother China's exports to the US."
"As by coincidence the Federal Reserve has decided that from March 23, 2006 they will not publish the M3 money aggregate anymore. To put it simply, they will keep secret how many dollars are held in non-American banks."