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Kuwait drops dollar

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By Ulf Laessing
KUWAIT, May 20 (Reuters) - Kuwait unshackled its dinar from the tumbling U.S. dollar on Sunday and switched the exchange rate mechanism to a basket of currencies, throwing plans for currency union with other Gulf Arab oil producers into disarray. Kuwait's central bank, which battled speculators for weeks to defend the peg, said the dollar's slide against other currencies had forced it to break ranks with fellow Gulf states to contain inflation from the rising cost of some imports.

The move stunned Gulf currency markets and volumes dried up. The impact would be clearer on Monday when international markets open, said Steve Brice, chief middle east economist at Standard Chartered Bank in Dubai.
Oman and Bahrain, the two smallest Gulf economies, and Saudi Arabia, the largest Arab economy, said they planned to stand by their pegs. There was no comment from the central bank of the United Arab Emirates, whose currency could take centre stage on Monday as prospects for a single currency evaporate.
Kuwait was still committed to monetary union, the central bank governor said in a statement, after changing the dinar's rate to $0.228806, an appreciation of about 0.37 percent. "The massive decline in the dollar's exchange rate against main currencies ... has contributed to the increase in local inflation rates and this step is part of the central bank's efforts to curb inflationary pressure," Sheikh Salem Abdul-Aziz al-Sabah said in a statement carried by state news agency KUNA.

More here:

http://yahoo.reuters.com/news/articl...mktNews&rpc=44[/url

Just wait for when China decides to convert it's Dollar reserves into Euros. Wallstreet's "Black Friday" will appear to be a harmless joke, compared to that.

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Originally Posted by Skybird

Just wait for when China decides to convert it's Dollar reserves into Euros. Wallstreet's "Black Friday" will appear to be a harmless joke, compared to that.

They won't do that until they're ready to take Taiwan. That way the US won't be able to afford the fuel to get over there to stop them.

If China maliciously dumps the dollar in this type of economic warfare, we may have to be ready to destroy China using any means possible (nuclear if necessary). It's a crappy option, but one we may have to exercise under this type of dire, chaotic, life threatening, and dangerous circumstance. I would expect my government (USA) to exact a painful retaliation 10 fold.

Spoken by testicles, not by brains.

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Originally Posted by Skybird

Spoken by testicles, not by brains.

I thought he was joking.:oops:

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Originally Posted by Ishmael

Quote:

Originally Posted by Skybird

Just wait for when China decides to convert it's Dollar reserves into Euros. Wallstreet's "Black Friday" will appear to be a harmless joke, compared to that.

They won't do that until they're ready to take Taiwan. That way the US won't be able to afford the fuel to get over there to stop them.

Hell, I can barely afford to drive to work these days as it is.:shifty:

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Originally Posted by Fish

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Originally Posted by Skybird

Spoken by testicles, not by brains.

I thought he was joking.:oops:

I thought not.

[hugs pound coin]

mhh.

If america does bomb china.... with nukes...as long as the radiation and all doesnt reach Canada im down for it.:hmm:..China is #1 polluter... biggest population... and biggest threat ... as they literrally have the man power to conquer asia and europe with ease...and probably the world.... heres a scenario where nukes are a good thing!:up::arrgh!:

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Originally Posted by elite_hunter_sh3

Are you serious?!
Do you know what your saying?
Thats a bloody big heap of bad karma.

think about it.... population of 1.3billion and rising... dont forget about the chinese population in other countries..... and with a base army of 100 million troops and a rapidly growing economy... = bad outcome.. with their reserves they can go up to 400 MILLION + troops... while USA's entire population is 300 million :o:huh:....once china feels like they want to flex their fists and go fight someone... they will.. they are just waiting till their economy is the highest it can be... they got new tanks, airplanes, helicopters, nukes, nuclear submarines rivalling the american subs.., massive amount of troops..... all i see is a grime future for the world... unless china is stopped... here and now... diplomatic means wont do anything because they now still have a strong army.. :shifty::shifty:

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Sounds like a rude way of not paying your debts :lol:

BTW maliciously? Why should China want to keep so much bons of a currency that might suffer heavy loses once the US economy can no longer stand its huge deficit?

The US economy is doomed, it's only a matter of when will the deficit exceed the credit capacity. If I had dollars I would get rid of them ASAP:huh:

What China is doing is an enormous favor to have taken so many until now....:hmm:

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Originally Posted by Hitman

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I agree, im wondering where all that money has gone.:hmm: If i would be living in the US id put my savings in Europe as Euros.