Chavez to seek Arab backing for `petro-currency'

Venezuelan president seeks Arab support for new oil-backed currency

DOHA, Qatar (AP) — Venezuelan President Hugo Chavez sought Arab support Tuesday for his idea of a new oil-backed currency to challenge the U.S. dollar at a twin-region summit whose agenda focuses on trade issue but also touches on Arab worries about rival Iran’s growing influence in Latin America.

It’s highly unlikely Chavez will gain any serious momentum for his “petro-currency” proposals from key oil-producing members of the Arab League such as Saudi Arabia and Gulf states, which have close ties to Washington.

But the summit between Arab and South American leaders kicks off another high-profile foreign trip for Chavez that includes stops in Iran and China in his efforts to build economic and diplomatic links to confront the United States.

“A new world is being born. Empires fall. There is a world crisis of capitalism, it’s shaking the planet,” Chavez told Venezuelan state radio after arriving in Qatar.

The global economic crisis is expected to take center stage at the one-day gathering.

AP