Ibrahim Algahtani

Bio: Ibrahim Algahtani is an academic researcher from King Fahd University of Petroleum and Minerals. The author has contributed to research in topics: Reserve currency & Ceteris paribus. The author has an hindex of 2, co-authored 3 publications receiving 46 citations.

Policy issues related to substitution of the US dollar in oil pricing

Abstract: This policy paper attempts to evaluate the viability of switching from the US dollar to the euro in international oil pricing. If materialised, the switch would not impact only OPEC nations but would also have ramifications for other oil exporting as well as importing nations. It would also have considerable effect on US economy and international financial system. This paper recommends that in deciding which currency to use in oil pricing, OPEC member countries should not allow their positive or negative political rapport with the US Government to distort their rational choice. Switching to euro or any other currency will not eliminate loss of revenue, as the newly adopted currency will not be immune either from the exchange rate gyrations. In fact, there is no guarantee that the euro, yen, sterling pound, or any other major currency will be immune from fluctuations. As a way out, this paper recommends three alternatives.

Portfolio risk reduction in oil pricing: the case for SDRs

Abstract: Recognising the superior benefits of risk reduction associated with using portfolio of currencies relative to a single currency (US dollar), this paper shows that, ceteris paribus, a minimum-variance portfolio of currencies in the developed world has weights that strikingly mimic those currencies making up the SDRs. This means that discounting the benefits of using the US dollar derived mainly from prevailing geopolitics and oil trade infrastructure, SDRs basket would be the viable alternative to use in oil pricing in terms of its superior risk reduction benefits.

An Overview of Recent Research in the Conversion of Glycerol into Biofuels, Fuel Additives and other Bio-Based Chemicals

Abstract: The depletion of fossil fuels has heightened research and utilization of renewable energy such as biodiesel. However, this has thrown up another challenge of significant increase in its byproduct, glycerol. In view of the characteristics and potentials of glycerol, efforts are on the increase to convert it to higher-value products, which will in turn improve the overall economics of biodiesel production. These high-value products include biofuels, oxygenated fuel additives, polymer precursors and other industrial bio-based chemicals. This review gives up-to-date research findings in the conversion of glycerol to the above high-value products, with a special focus on the performance of the catalysts used and their challenges. The specific products reviewed in this paper include hydrogen, ethanol, methanol, acetin, glycerol ethers, solketal, acetal, acrolein, glycerol carbonate, 1,3-propanediol, polyglycerol and olefins.

Gulf Cooperation Council Oil Exporters and the Future of the Dollar

Abstract: Since the mid-1970s, the value of the United States' dollar has been upheld by a number of domestic and international factors. An often underestimated factor is that oil is sold and traded in US do...

Reframing the euro vs. dollar debate through the perceptions of financial elites in key dollar-holding countries

Abstract: This paper proposes a theoretically-informed and empirically-grounded cognitive approach to analyse how financial elites from China, the Gulf Cooperation Council states and Brazil interpret the euro vs. dollar debate. At the theoretical level, we argue that the debate should be reframed in order to capture not only the material, but also the ideational footprint of the euro, as well as to better conceptualise change in the International Monetary System (IMS). Our empirical work shows that the euro is perceived by financial elites as a useful diversification tool to avoid over-exposure to dollar weaknesses. However, despite its appeal as a valuable investment alternative, the European currency has a series of structural flaws that prevent it from substituting the dollar as the main international currency. Therefore, in purely material terms, the euro-sceptical literature is correct. However, we also find that the hitherto material inroads of the euro, while limited, have been sufficient to ideatio...