Chavez in Middle East Pushing for Petro-Currency, End to Dollar

Hugo Chavez is urging Middle Eastern Arab states to adopt a petro-backed currency as a replacement to the global standard of the U.S. dollar. The concept was unveiled at a summit in Qatar.

There is a new definition of oil money being circulated in the Middle East. At a summit between South American and Arab League leaders, Hugo Chavez, the fiery Venezuelan leader, suggested the adoption of a new petro-currency - one that would fully replace the U.S. dollar. Echoing sentiments expressed two weeks earlier from Chinese leaders on the potential for removing the U.S. currency as the central underpinning of worldwide currencies, Chavez introduced the idea to a Middle Eastern audience that has seen their economies reverse with reversing crude oil prices globally. "Chavez has long criticized the dominance of the dollar and plans Tuesday to seek Arab backing for a new currency backed by the resources of major oil producing countries, such as Venezuela and other OPEC members," The Associated Press reported. In this tough economic environment, Middle Eastern leaders could very well be receptive to the idea of a petro-currency. Confidence in the U.S. economy has waned in the wake of the housing market crisis and the related fallout from that crisis. Many Middle Eastern nations have desperate needs to invest in their respective infrastructure, and the drop in oil prices has made this investment all but impossible. After the Qatar summit, Chavez is expected to travel to Iran and then to China. The Obama Administration has not commented on the Chavez proposal. The Venezuelan leader recently characterized President Obama as naive.