lennart
17-05-04, 00:06
Riyadh scraps euro foreign reserves policy
BRUSSELS — Saudi Arabia has abandoned its policy of diversifying foreign reserves into euros, deeming the euro zone unfit to manage a major world reserve currency.
Muhammad al-Jasser, vice-governor of the Saudi Arabian Monetary Agency, said the dollar remains the safest bet for central banks in the Middle East, despite America's trade and budget deficits. The agency is the kingdom's equivalent of the Federal Reserve.
"The euro has not yet gained a competitive status against the dollar as a major reserve currency. People are not going to switch to euros until European financial markets become more competitive, deeper, more liquid and diversified," Mr. al-Jasser said.
A spokesman for Frits Bolkestein, the European commissioner for the single market, said the criticism is harsh but true. Mr. Bolkestein has devoted much of the last five years trying to break down barriers to free capital movement, but has met with implacable resistance from vested interests.
(...)
http://www.washtimes.com/world/20040515-111510-7459r.htm
De vraag blijft natuurlijk, wat gaat de olieprijs doen.
BRUSSELS — Saudi Arabia has abandoned its policy of diversifying foreign reserves into euros, deeming the euro zone unfit to manage a major world reserve currency.
Muhammad al-Jasser, vice-governor of the Saudi Arabian Monetary Agency, said the dollar remains the safest bet for central banks in the Middle East, despite America's trade and budget deficits. The agency is the kingdom's equivalent of the Federal Reserve.
"The euro has not yet gained a competitive status against the dollar as a major reserve currency. People are not going to switch to euros until European financial markets become more competitive, deeper, more liquid and diversified," Mr. al-Jasser said.
A spokesman for Frits Bolkestein, the European commissioner for the single market, said the criticism is harsh but true. Mr. Bolkestein has devoted much of the last five years trying to break down barriers to free capital movement, but has met with implacable resistance from vested interests.
(...)
http://www.washtimes.com/world/20040515-111510-7459r.htm
De vraag blijft natuurlijk, wat gaat de olieprijs doen.