If the oil producing gulf states follow through on this it will mean that the US dollar will collapse since it no longer functions as the worlds reserve currency. It will be the end for the US economy with disastrous consequences.
DUBAI (Reuters) – Merrill Lynch & Co said the United States has effectively given Gulf Arab oil producers the go ahead for making changes to their dollar-pegged foreign exchange policies, by recognizing inflation as a problem.
In a report entitled “U.S. Green Light for the GCC”, the U.S. investment bank said the United Arab Emirates and Qatar will probably move to a currency basket in the next few months, with their respective currencies appreciating 5 percent before the end of the year.
Saudi Arabia is unlikely to follow until late next year, Merrill said in the report received on Sunday.