I have read many articles in recent months about the effect that worldwide dollar dumping would have on the economy. It's scary stuff and the consequences could be quite grave. Anyway, I came across this article which talks about how the Kuwaiti government has removed the currency peg that it has to the dollar and instead have switched to a 'basket of currencies'. Although the article states that 75-80% of this 'basket' will be made up of the dollar, the very fact that they are diversifying away from the dollar is alarming. I've read many times about the chain effect that a move like this could cause. The article ends by saying that the CGG (Gulf Co-Operation Council) states- Saudi Arabia, the United Arab Emirates, Bahrain, Qatar and Oman are studying the move as an option to mitigate dollar weakness. Frightening read!
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