Venezuela 'may swap oil currency'

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Venezuela 'may swap oil currency'

Postby Byrne » Thu May 18, 2006 5:54 am

From <!--EZCODE LINK START--><a href="http://news.bbc.co.uk/1/hi/business/4990302.stm" target="top">BBC News</a><!--EZCODE LINK END-->:<br><!--EZCODE HR START--><hr /><!--EZCODE HR END--><br><!--EZCODE BOLD START--><strong>Venezuela 'may swap oil currency' </strong><!--EZCODE BOLD END--> <br> <br>President Chavez has big plans for Venezuela's oil industry <br>Venezuela has hinted it could price its oil exports in euros rather than US dollars, further weakening its links to the US. <br>President Hugo Chavez said he was considering taking the step following a similar declaration by Iran. <br><br>Earlier this month, Iranian authorities gave backing for the launch of an oil exchange that traded solely in euros. <br><br>Some reports have suggested Iran's move may be part of a bid to undermine the importance of the dollar. <br><br>But in an interview with Channel 4 News in London, Mr Chavez said the move was merely a matter of choice. <br><br>"I think the European Union has made a large contribution with the euro," he said. <br><br>"So what the president of Iran says ... is recognising the power of Europe - they have succeeded in integrating and have a single currency competing with the dollar, and Venezuela might also consider that - we are free to do that," he added. <br><br><!--EZCODE BOLD START--><strong>Dollar concerns</strong><!--EZCODE BOLD END--> <br><br>Experts have suggested that, should Iran demand payment for its exports in euros, central banks could opt to convert some of their dollar reserves to euros and therefore possibly trigger a further decline in the US currency. <br><br>The dollar has already come under pressure in foreign exchange markets in recent weeks, triggering nervousness in world stock markets. <br><br>Central banks, especially in Asia, who hold large amounts of the US dollar, could find the value of their foreign currency reserves substantially reduced. <br><br><!--EZCODE BOLD START--><strong>Tensions rising</strong><!--EZCODE BOLD END--> <br><br>Iran is currently embroiled in a stand-off with the US in a row over its nuclear ambitions. <br><br>Iran, the second-largest exporter in oil producing nations group Opec, insists merely wants to build power stations, but the US claims it is building nuclear arms. <br><br>Meanwhile, Venezuela - the world's fifth largest oil producer - has been trying to reduce its dependence on the US, as relations have been strained under President Hugo Chavez. <br><br>In April it signed a joint venture with Cuba - a long time opponent of the US - to revamp an oil refinery and supply unrefined oil to the country. <br><!--EZCODE HR START--><hr /><!--EZCODE HR END--><br><br>This is really going to wind up BushCo. <br><br>Also interesting is that Chavez visited Libya after his 2-day stopover in London. It was <!--EZCODE LINK START--><a href="http://www.inthenews.co.uk/news/news/economy/venezuela-may-ditch-dollar-euro-$440160.htm" target="top">reported</a><!--EZCODE LINK END--> that Chavez discussed ways to improve bilateral ties on oil with Libyan leader Muammar Gaddafi. On the same day, the US <!--EZCODE LINK START--><a href="http://www.mercurynews.com/mld/mercurynews/news/politics/14602065.htm" target="top">restored </a><!--EZCODE LINK END--> diplomatic relations with Libya (after 25 years).<br><br><!--EZCODE ITALIC START--><em>On Edit:</em><!--EZCODE ITALIC END--><br>I see that Pakistan's Prime Minister has arrived in Libya for a 2 day visit. From <!--EZCODE LINK START--><a href="http://www.adnki.com/index_2Level_English.php?cat=Politics&loid=8.0.299690786&par=0" target="top">here</a><!--EZCODE LINK END-->:<br><!--EZCODE ITALIC START--><em>Tripoli, 17 May (AKI/APP) - Pakistani Prime Minister Shaukat Aziz arrived in Libya Wednesday on a two-day visit where he will discuss ways to further strengthen cooperation<br>in diverse fields. Talking to reporters at the airport he said his visit was aimed at further strenghthening ties between the two countries as they have a similarity of views on<br>global issues. "Libya has stood by Pakistan in challenging times," he said and added he expected to further improve relations in all areas.</em><!--EZCODE ITALIC END--> <br><br>Maybe Pakistan have been told by the US to <!--EZCODE ITALIC START--><em><!--EZCODE BOLD START--><strong>find out what Chavez said!!</strong><!--EZCODE BOLD END--></em><!--EZCODE ITALIC END--><br><br><br> <p></p><i>Edited by: <A HREF=http://p216.ezboard.com/brigorousintuition.showUserPublicProfile?gid=byrne@rigorousintuition>Byrne</A> at: 5/18/06 4:00 am<br></i>
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