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Iran No Longer Accepts US Dollars for Oil
by Dave Keating | May 1, 2008 at 05:04 am | 720 views | 9 comments
As fears grow that both China, with its massive foreign currency reserves, and the Middle Eeastern oil states will move from the dolalr to the euro as their favored international currency, Iran has announced that it is no longer accepting US dollars for oil, only euros and yen. Is it the first domino to fall?
Iran, OPEC's second-largest producer, has completely stopped conducting oil transactions in U.S. dollars, a top Oil Ministry official said Wednesday, a concerted attempt to reduce reliance on Washington at a time of tension over Tehran's nuclear program and suspected involvement in Iraq.
Iran has dramatically reduced dependence on the dollar over the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency.
Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves.
"The dollar has totally been removed from Iran's oil transactions," Oil Ministry official Hojjatollah Ghanimifard told state-run television Wednesday. "We have agreed with all of our crude oil customers to do our transactions in non-dollar currencies."
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May 1, 2008 at 05:04 am by Dave Keating, 720 views, 9 comments
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Comments (9)
at 05:10 on May 1st, 2008
Dave Keating, I like this story. It's good stuff. So Euro is the currency of the future?
at 05:36 on May 1st, 2008
Start hoarding your euros now! I know I am.
at 06:29 on May 1st, 2008
Actually, the second... Iraq also moved from the petroDollar to the petroEuro, and it didn't turn out so well for Saddam- economically, this was the US's main reason for invading: not controlling the oil itself, but how the oil is bought and sold. If petroDollars are no longer accepted, all of those debts can be cashed in for, well, cash, whereas now the same cheques are circulated over and over again.
at 06:39 on May 1st, 2008
great story.
i wonder how how this will affect further U$ inflation, since it limits of the number of ways a $ can be spent, levaing more of them to be spent where they can be.
at 08:24 on May 1st, 2008
Dave Keating, I like this story. It's good stuff.
at 08:44 on May 1st, 2008
Dave Keating, I like this story. It's good stuff.
at 09:22 on May 1st, 2008
Awesome and about time another country had the guts to break the US monopoly! The USA claims to thrive on competition, but that is just a lie, they are the ultimate corporate welfare state, and crush honest competition whenever possible. What was the real reason Iraq was attacked? Some believe that the final straw was Saddam shifting from the US dollar. Now that Iran has taken the same step, how long until there is an invasion of Iran by the USA.
The Saudis and the rest of the OPEC countries don't need the USA anymore as the growing demand for oil from developing powerhouses like China and India will take everything they can produce, and globally many countries are beginning to realize that the USA isn't worth propping up and needs to be taught a lesson. The Chinese will use the Ace they are holding when the pugilistic fools in Washington force their hand.
While the US politicians posture in their continuing delusion about their own significance the world is passing them by, and events that will sideline America that they cannot control are already in motion.
Not a minute to soon.
at 11:10 on May 1st, 2008
What else is new? We don't buy Iran's oil anyway. And get this, VP Cheney started moving all his money into Euros back in 2006, literally many millions.
at 19:33 on May 1st, 2008
Dave Keating, I like this story. It's good stuff.