November 19, 2007

OPEC considers moving off the US dollar peg: will Russia be the first??

The financial merits of such a move are clear with the dollar continuing its descent: the declining dollar makes oil prices rise faster than they would if this were not the case. Moreover, OPEC's dollar-based revenues and accumulated surplus income is declining along with the value of the U.S. currency. Russia is likely to be the first.

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