Saudi Minister of State Tells It Like It Is

[David Farber <dave () farber net>]

Begin forwarded message:

From: dewayne () warpspeed com (Dewayne Hendricks)
Date: February 12, 2008 1:52:25 AM EST
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] Saudi Minister of State Tells It Like It Is

[Note:  This item comes from reader Jack Unger.  DLH]

From: Jack Unger <junger () ask-wi com>
Date: February 11, 2008 10:21:00 PM PST
To: Dewayne Hendricks <dewayne () warpspeed com>
Subject: Saudi Minister of State Tells It Like It Is

TALLAHASSEE, Florida -- Saudi Arabia's currency and oil price will  
remain tied to the U.S. dollar despite its current weak valuation,  
Saudi Minister of State Abdullah Alireza said on Monday.

But speaking at a global cooperation conference at Florida State  
University in Tallahassee, Alireza said relations between the two  
countries continue to fray in what he called a "drifting apart" that  
has occurred between the long-time allies since the Sept. 11, 2001,  
attacks and the invasion of Iraq.

Saudi Arabia, the world's biggest oil exporter, pegs its riyal to the  
U.S. dollar. But surging inflation has intensified debate about dollar  
pegs throughout the Gulf region.

With $400 billion to $500 billion tied up in the U.S. currency,  
uncoupling the currencies would be like Saudi Arabia shooting itself  
in the foot, Alireza said.

"The dollar is our currency of choice," he said. "We have no reason to  
believe that currency reevaluation would be a panacea."

While tied together monetarily, Alireza said, tensions between the two  
counties that began after 9/11 were exacerbated when the United  
States, over Saudi objections, invaded Iraq.

<http://www.reuters.com/article/oilRpt/idUSN1117122320080212>


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