View Full Version : Tehran Dumps Dollar for Euro
kevin82
29-09-2009, 09:53 AM
Arabian Business News
September 28, 2009
Iran’s President Mahmoud Ahmadinejad has ordered the replacement of the US dollar by the euro in calculating the value of the country’s Oil Stabilisation Fund (OSF).
The edict, issued on Sept 12, follows a recommendation by the trustees of the country’s foreign reserves, Iran’s English-language daily The Tehran Times said on Monday, citing Iran’s semi-official Mehr News Agency.
The move was taken because the government wishes to protect itself from the fragility of the US economy and the weak dollar.
The OSF, which forms part of Iran’s foreign exchange reserves, is a contingency fund set aside to cushion the economy against fluctuating international oil prices.
http://www.infowars.com/tehran-dumps-dollar-for-euro/
djhooker
29-09-2009, 10:05 AM
looks like it's war time.
liltza
29-09-2009, 10:08 AM
Can someone explain to me the implications of this and why it may lead to war?
jiffy
29-09-2009, 10:16 AM
Clever move, if economic sanctions are applied, keeping the dollar would of made life very difficult.
Russia and China will be more than happy to deal in Euros rather than Dollar's.
Plus it has the added bonus of putting pressure on the dollar, which may make others jump ship.
Remember reading Iran along with trade partners dumping the dollar for euro months ago.
djhooker
29-09-2009, 10:22 AM
Can someone explain to me the implications of this and why it may lead to war?
the iraq war pretty much started cos saddam did the same thing.
yozhik
29-09-2009, 10:22 AM
Can someone explain to me the implications of this and why it may lead to war?
The USD is supported globally by it being the currency for trade; particularly oil, which it currently has a monopoly position over.
Remove the monopolistic position and the USD crumbles.
Why would countries need to hold USD in reserve if its no longer needed for oil purchases?
Petrodollar dumped.
USD crunbles.
US economy collapses.
War = protect currency.
Side Note
70% of Saudi oil money is deposited in New York.
If USD is no longer used as the Petrodollar, Saudi funds will be taken out of USD based accounts and moved to Europe [if Euro or CHF becomes the new Petrocurrency].
jiffy
29-09-2009, 10:27 AM
Can someone explain to me the implications of this and why it may lead to war?
The only reason the dollar has survived or has any worth is because it is the default world currencies, all commodities (Oil, gold ect) are quoted and traded in dollars.
A move to trade in something other than dollar will put pressure on the said currency. Thus driving down it's value, then making even harder for the US to raise finance on the bond markets.
It could also cause a run on it, meaning people holding the Dollar all try and sell because the value is falling.
Would be simplistic to say this move alone will/would cause war but it is a stepping stone. No Imperialist country will ever give up it rule without a fight.
tien an
29-09-2009, 10:38 AM
Can someone explain to me the implications of this and why it may lead to war?
We're all kids in the playground...
Sweets are bought / sold using MY currency.
Suddenly, you find that you need more and more of my currency to buy sweets / get lots of next-to-worthless currency by selling your sweets...so you decide to use someone else's currency.
(Oh, and I'm also the playground bully...).
"You! Behind the bike sheds...NOW!"
liltza
29-09-2009, 10:52 AM
We're all kids in the playground...
Sweets are bought / sold using MY currency.
Suddenly, you find that you need more and more of my currency to buy sweets / get lots of next-to-worthless currency by selling your sweets...so you decide to use someone else's currency.
(Oh, and I'm also the playground bully...).
"You! Behind the bike sheds...NOW!"
lol cool ok i get it.
thanks everyone else