Fisk’s report sends dollar plummeting

By Daily Maverick Legacy 7 October 2009

For years, the US was not only the world’s biggest economy, but also a guarantor of global stability and accountability. But those times are gone, maybe forever. The world is in such a jittery state that even a single report on efforts to replace dollar-pricing of oil with a basket of currencies, including ones that still don’t exist, was enough to wreak havoc and inflict pain on the dollar. Published by the UK Independent ‘s Robert Fisk, the report caused a move away from the dollar, plunging its value against the euro to 1.48, the lowest in two years as well as sending gold to an all-time high of $1,043.78. As the situation worsened, Kuwait's oil minister Sheik Al Sabah and head of the United Arab Emirates' central bank, Sultan al-Suweidi, assured the world there are no plans to abandon the dollar. But the markets will still be guessing, especially after the dollar's share of total reserves fell to its lowest level since 1995 and World Bank CEO, Robert Zoellick said the dollar can’t automatically be relied upon as a global currency. Then again, maybe Mr Fisk just wanted a much better exchange rate for his coming US vacation?

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