...regarding the demise of the dollar have been greatly exaggerated. The following from Bloomberg describing the heavy foreign demand for U.S. securities. The last bit regarding the oil exporting conglomerate is especially enlightening.
China, the second-largest holder of U.S. Treasuries, reduced
its holdings by $6.6 billion, bringing its total to $407.4
billion. Over the two months of April and May, China's
investments in Treasuries have slumped by $12.4 billion, the most
in at least seven years. China is diversifying its foreign-
exchange reserves, the world's largest, to seek higher returns.
Japanese and U.K. investors increased their holdings of U.S.
government debt in May, while Caribbean countries' holdings
declined, the Treasury said.
Japan, the largest foreign owner of U.S. Treasury
securities, increased its holdings by $400 million to $615.2
The U.K., which, through London, acts as a transit point for
international investors, especially those in the Middle East,
added a net $33.1 billion, bringing holdings to $167.6 billion.
Caribbean banking centers, which analysts link to hedge
funds, sold a net $28.5 billion, bringing holdings to $48
Major oil exporters -- a group that includes the members of
the Organization of Petroleum Exporting Countries, Ecuador,
Bahrain, Oman and Gabon -- bought a net $9.1 billion of U.S.