fools of today the kings of tomorrow . . . remember
UAE considers cut in dollar reserves
By Peter GarnhamMon Oct 30
The United Arab Emirates, the second-largest Arab economy, signalled on Monday that it might cut its holdings of dollars by almost half, highlighting a recent trend of reserve diversification away from the US currency.
Sultan bin Nasser al-Suwaidi, the governor of the central bank of the United Arab Emirates, told a meeting of central bankers from Gulf states in Abu Dhabi that the bank wanted eventually to lower the dollar's share of its foreign currency reserves to a range of 50-90 per cent. Currently the UAE holds 98 per cent of its $25bn foreign exchange reserves in dollars and 2 per cent in euros.
"It is our investment policy to diversify," said Mr al-Suwaidi. "We are still waiting for the appropriate time."
Mr al-Suwaidi said that the central bank was still planning to convert as much as 8 per cent of its dollar holdings into euros - a scheme it first proposed in March amid fears that the US currency was set to depreciate. END
Mining Metals Oil & Gas Congress Dubai
http://events.onlinebroadcasting.com/minellc/103106/index.php?mode=1&sel_date=2
Mining Metals/Oil & Gas Congress Dubai 2006October 31 - November 1, 2006
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