Sunday, January 22, 2006

PetroDollars and the Iranian Oil Bourse

Good, hard headed and sober analysis pouring cold water on the conspiracy theory here; taking aim at an analysis here.

Since writing about this before, I've grown more sceptical - but I'm not yet completely convinced that it will have no effect on the exchange rate of the dollar.

As much as anything else, I see it as having a psychological effect - knocking the dollar off its pedestal - and along with many other reasons for dollar weakness, I can see it contributing to a more or less gentle decline in dollar value.

We shall see.

UPDATE: see also here.

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