OAPEC: the volatility of the dollar is concerned about oil-producing countries

Kuwait – KUNA – considered the Organization of Arab Petroleum Exporting Countries (OAPEC), the fluctuations in the exchange rate of the dollar and the decline in value against other major currencies, affecting the value of the proceeds of the oil-exporting countries, and strongly contributed to the rise in crude prices in world markets at this stage », expected «face the economic performance of these countries, the challenges as a result of fluctuation of the dollar, and are influenced by the relevant settings petroleum industry.

The Organization said in an editorial published monthly, that any substantial rise in oil prices does not achieve the expected gains for the exporting countries under the current weakness of the dollar. It is therefore important to improve the rate of exchange to avoid the negative effects of it », pointing out that« the Petroleum Exporting Countries are to varying degrees, to estimate its oil revenues, according to local currency based on the three external factors, is in the price of oil and the quantity of production and export it, in addition to the price of the dollar, the currency in which the main financial reserves in the world, central banks hold large reserves of them.

Reported that the process of oil pricing and payment of value of shipments is not only the dollar, and by the continued downward trend may display the associated States, to the economic difficulties including a drop in the purchasing power of some national currencies associated with it, and the high prices of many industrial equipment, goods and services and food in addition to the impact indirect on the lives of individuals, households and social development.

The OAPEC affected the purchasing power of oil prices in global markets staffed by two main factor: the value of the dollar against major currencies in case of imports from areas outside the United States, and global inflation factor resulting from imports from countries experiencing a rise in inflation rates.

It continued: Despite the gains made by the Member States of the Organization of OAPEC rise in the revenues of oil in 2010 which amounted to 451 billion dollars compared to 352 billion in 2009, but the real income did not exceed last year’s 352 billion almost measured in real terms for 1995 reference , which may affect its economic and social development.

She explained that the link of trade of member countries with the United States, is divided into two first includes Kuwait, United Arab Emirates, Saudi Arabia, Bahrain, Qatar and Egypt, are those countries which link major commercial with the U.S. The share of imports of between 8.5 percent and 13.5. As for the group second will involve Syria, Libya, Algeria and Iraq, with a link Commercial least in the United States The share of imports between 1.4 percent and 8 percent, and associated with most countries in this group are the largest in the euro zone, especially Algeria and Libya share of import of more than 50 percent of the total imports, so the two groups affected by the movement of major currencies associated with them.

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