Pastor General's Report
On The World SceneOn The World Scene

DOLLAR WOES The pressure on the U.S. dollar continues unabated. In Tokyo this morning, the yen slipped to another record low, just barely above 225 yen to the dollar. When I was in Tokyo last July the rate was 270:

Stories out of the oil producing nations are hinting more and more that some OPEC powers, so alarmed over the decline of the dollar, are pushing for a cut in the link between oil price and the dollar; that is, no longer to price it in American currency but in another, or perhaps a new rate reflecting several strong currencies, such as the D-mark, Swiss franc and the yen.

If such a move occurred and there are some doubts it can be effected now, since the dollar is the world's only major reserve currency there could be a massive dumping of the dollar around the world collapsing its value even more. If OPEC does not adopt such a move at this date, it is certainly a possibility later on. They may just settle for a hike in price of oil for now.

Meanwhile, President Carter enbarks on a weeklong foreign trip, leaving behind urgent memos from top officials to exercise his presidential power and impose a stiff tax on imported oil. He is not likely to do so unless the OPEC mini-summit on April. 3 forces his hand.

Back To Top

Pastor General's ReportMarch 27, 1978Vol 2 No. 10