OPEC could ditch dollars for euros - Chief
OPEC could switch the pricing of oil from dollars into euros within a decade, Secretary general Abdullah Al-Badri said.business Updated: Feb 09, 2008 09:28 IST
OPEC could switch the pricing of oil from dollars into euros within a decade, Secretary general Abdullah Al-Badri told a weekly magazine.
The Organization of the Petroleum Exporting Countries could adopt the euro to combat the decline of the dollar, Badri told the Middle East Economic Digest (MEED), published in London.
"Maybe we can price the oil in the euro. It can be done, but it will take time," he said.
Badri told MEED the change could happen within a decade, the magazine said.
MEED recalled that OPEC is under pressure from its members, who have seen their earnings decline sharply since 2000 due to its use of the dollar, which has fallen 44 percent in value against the euro in that time.
"In oil exchanges in New York, Singapore or Dubai, you can see the currency is the euro or the yen," Badri said.
"But as long as we see the final sign in dollar, that means the pricing is in dollars.
"It took two world wars and more than 50 years for the dollar to become the dominant currency. Now we are seeing another strong currency coming into the (frame), which is the euro."