Thank President Bush (from the FT...)
Oil exporters have sharply reduced their exposure to the US dollar over the past three years, according to data from the Bank for International Settlements.
Members of the Organisation of Petroleum Exporting Countries have cut the proportion of deposits held in dollars from 75 per cent in the third quarter of 2001 to 61.5 per cent.
Middle Eastern central banks have reportedly switched reserves from dollars to euros and sterling to avoid incurring losses as the dollar has fallen and prepare for a shift away from pricing oil exports in dollars alone.
Private Middle East investors are believed to be worried about the prospect of US-held assets being frozen as part of the war on terror, leading to accelerated dollar-selling after the re-election of President George W. Bush.
Thank you, thank you, a thousand thank yous.
-- Josh Marshall
1 hour ago