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Speaking out: Chakib Khelil

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'Dollar's role will decline'

The US dollar will be a reserve currency for a long time but will gradually "give place" for other currencies, Algeria's Oil Minister Chakib Khelil said today.

"The same trend that happened to the pound sterling, which used to be the major currency for commodities and reserves, has left its place to the dollar, so it is normal that the dollar will slowly leave space for the euro, maybe for the yuan, for the yen and so forth," Reuters quoted Khelil saying at a news conference.

Oil and currency markets were roiled yesterday by a report that major crude exporters were planning to reduce their reliance on the US currency.

The head of Saudi Arabia's central bank denied there were any secret talks under way to replace the dollar.

Khelil said he did not expect Opec to raise oil production at its December meeting.

Speaking at a press conference at the World Gas Conference in Buenos Aires, Khelil said oil supply still exceeds demand.

However, if the global economy recovers in 2010, oil prices could reach $80 a barrel, he said.

Algeria's gas exports have declined, but not more than 10%, he said, adding that the country had no plans to slow down liquefied natural gas projects on low gas prices.

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