16 May, 2008 |

Gulf Reserves Swell to $1.6 Trillion

While the soaring price of oil and subsequent buildup of reserves have garnered the attention of currency analysts to the MidEast, it is China and its $1.2 Trillion which generates the majority of forex reserves commentary. However, this may soon change. In a recent report, The Institute of International Finance noted that the collective foreign exchange reserves of the six-member Gulf Cooperation Council now total $1.6 Trillion. Further, as the price of oil predictably increases over the summer, the reserves will only grow larger, which should ensure that the region remains a mainstay of forex punditry. The Financial Times reports:

The UAE, Saudi Arabia and Kuwait account for the bulk of the GCCs $1,550bn of foreign asset holdings, according to the IIF. The overall holdings represented 225 per cent of the GCCs grossdomestic product.

Read More: http://www.ft.com/cms/s/b6faf9c4-0fac-11dc-a66f-000b5df10621.html

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