What petro-dollar?

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http://www.voltairenet.org/article138048.html

The US dollar on reprieve

The Asian Development Bank warns of threatening monetary turmoil

The oil trade is uneasy about the increasing impossibility of reinvesting the petrodollars they are accumulating, whereas the bank world is pondering over the dollar’s real value. A downturn in trade has just begun on the stock exchanges of the Gulf, even as the Asian Development Bank was warning its members against a possible collapse of the US currency. What if the dollar was really no longer anything but fiat money?

For several months a lively debate has been developing within international financial circles: is the dollar so overvalued as to be at risk of a brutal collapse, on the order of 15 to 40% depending on the commentator? The controversy is kept alive by a disputed rumour whereby some oil contracts might be on the verge of being converted from dollars into euros. This, in turn, would spawn a depreciation of the US currency.

Until now, official statements on this issue seemed to belong to the realm of psychological warfare between rival powers. As such, they were subject to question. But suddenly, on March 28th, 2006, the Asian Development Bank (ADB) chose to put its credibility at stake among its members by issuing a memo advising them to be ready for a collapse of the dollar. In the same note, the ADB specifies that there is a certain degree of uncertainty as to whether this might happen or not, but that the immediate consequences would be severe if it were to happen [1]. The ADB is already in the process of working on the creation of a regional alternative to the dollar – the ACU, a basket of currencies modelled on the principles of the European ECU.