[pogoliamo]

$this->bbcode_second_pass_quote('', '[')b]UAE may convert holdings to euros Says may switch up to 10% of $22.5 billion reserves By Steve Goldstein, MarketWatch, Last Update: 10:23 AM ET Mar 13, 2006:
(Corrects the name of the UAE bank governor in the second and third paragraph.)
LONDON (MarketWatch) -- The central bank governor of the United Arab Emirates suggested the country may switch up to 10% of its $22.5 billion in currency reserves into euros, in a sign of fallout from Congress' hostility to the acquisition of some U.S. ports by a Dubai-based firm.
The comments from UAE Central Bank Governor Sultan Bin Nasser Al Suwaidi didn't have a huge impact on the euro, which rose about 0.2% at $1.1925.

[mekrob]

.2% is not much when they announce it, but what happens if they actually switch 2.2 bln to the euro? It could be much more significant if they pull it off and that would only make others more likely to do the same.

[DantesPeak]

Perhaps more importantly if the individual Shieks of the Persian Gulf switch their holdings out of the dollar, the flight out of the dollar may begin in earnest.

But that hasn't happened yet. So far in 2006, petrodollar cycling from the governments of OPEC has actually accelerated to its highest levels ever.

[TWilliam]

$this->bbcode_second_pass_quote('DantesPeak', 'S')o far in 2006, petrodollar cycling from the governments of OPEC has actually accelerated to its highest levels ever.