SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mishedlo who wrote (66680)7/17/2007 7:01:45 PM
From: sea_biscuit  Read Replies (1) of 116555
 
At any rate, where Iran HOLDS currency DOES matter IMO.
What oil is priced in is totally irrelevant IMO.

Not if what currency a country holds depends on what currency oil is priced in.

Take India, for example. It holds large amounts of USDs in its reserves primarily because oil is priced in USDs.

The reason for holding USDs and not any other currency is to avoid uncertainty on the currency fluctuation front. That oil prices fluctuate makes things uncertain enough. Imagine holding some currency (in India's case, say, the rupee). Now in addition to fluctuating oil prices, there is also the issue of fluctuating currency rates. If oil prices rise AND the dollar becomes stronger against the rupee, then it is a double whammy.

If oil is no longer priced in USDs, the reason for holding a large reserve of USDs will go away too. The two aspects are like the two sides of the same coin.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News