Iran Switches from USDollar to Euro

Iran Switches from USDollar to Euro

Joined: Jan 24 2006, 10:57 PM

Dec 20 2006, 11:35 AM #1

From BBC News Report of 18th December 2006
Dollar dropped in Iran asset move 
18 December 2006, 16:59 GMT 

Iran is to shift its foreign currency reserves from dollars to euros and use the euro for oil deals in response to US-led pressure on its economy.
In a widely expected move, Tehran said it would use the euro for all future commercial transactions overseas.

The US, which accuses Tehran of supporting terrorism and trying to obtain nuclear weapons, has sought to limit the flow of dollars into Iran.

It wants the United Nations Security Council to impose sanctions on Iran.

Analysts said Tehran had been steadily shifting its foreign-held assets out of dollars since 2003 and that Monday's announcement was unlikely to affect the value of the dollar, which has weakened significantly in recent months.

An Iranian spokesman said all its foreign exchange transactions would be conducted in euros and its national budget would also be calculated in euros as well as its own currency.

"There will be no reliance on dollars," said Gholam-Hussein Elham.

"This change is already being made in the currency reserves abroad."

The currency move will apply to oil sales although it is expected that Iran, the world's fourth largest oil producer, will still accept oil payments in dollars.

Washington has sought to exert financial pressure on Iran, which it accuses of flouting international law by trying to acquire nuclear weapons.

Tehran denies this, saying its nuclear research is for purely geared towards civilian uses.

Most international banks have stopped dollar transactions with Iran and some firms have ceased trading with Iran altogether in anticipation of possible future sanctions.

The dollar slipped slightly against the euro in New York trading although analysts said they did not expect the reaction to be too severe.

"It is something they have been saying they are going to do for quite a long time now, so I wouldn't expect any market reaction," said Ian Stannard, an economist with BNP Paribas.

The BBC's Tehran correspondent Frances Harrison said Iranian businessmen were complaining about delays in securing letters of credit and saw current conditions as a prelude to the imposition of sanctions.

Tehran has urged Iranian businesses to open letters of credit in euros in the future.
The article states that the Dollar to Euro switch was a ' a widely expected move'. (Stories of the Iranian Oil Bourse have benn floating around for at least a year.......)

So, expecting this Iranian move, the bankrupt US responds with Naval buildups in the Gulf & Blair responds with

Iran a 'major threat', says Blair 
 
Tony Blair has said Iran poses a "major strategic threat" to the Middle East and is "deliberately causing" problems. 
source
Blair has the fricken gall to use the 'major threat' in the Middle East referencet in the week where it was revealed that the UK Government knew that there was no threat from any WMD in Iraq in 2003, but despite that, took the UK into an illegal war, on the basis of the revised legal opinion of the Attorney General.

The threat to the US dollar oil hegemony was, I believe, the REAL REASON for the invasion of Iraq. Saddam Husseain switched to using the Euro in late 2000.
In some ways she was far more acute than Winston, and far less susceptible to Party propaganda. Once when he happened in some connection to mention the war against Eurasia, she startled him by saying casually that in her opinion the war was not happening. The rocket bombs which fell daily on London were probably fired by the Government of Oceania itself, "just to keep the people frightened." -- George Orwell, 1984
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Joined: Aug 15 2006, 07:56 PM

Dec 20 2006, 02:11 PM #2

The threat to the US dollar oil hegemony was, I believe, the REAL REASON for the invasion of Iraq.
I suggest that there was not one real reason but many supported by different interested parties. As Sinclair states, the threat to the bankrupt US economy was one reason for US economists and government. Grabbing and controlling the oil was a reason for multinational oil corporations and US and UK governments. Creating a market through destroying the country was a reason for global Capitalism i.e. everything destroyed needs to be rebuilt. Attempting to bring about or hasten the start of the rapture was a reason for Christian and Zionist types. I would include Bliar in this group. Israel's interests was a reason for insane Christian and Zionist types. There was a secondary effect here where Dubya is answerable to the US Christian lobby. Selling weapons was a reason for the hugely influential arms trade. Occupying Iraq and establishing permanent military bases was a reason for PNAC Neo-Conservatives. I would include Blair in this category. There's the issue of establishing Capitalism worldwide which seems to be the purpose Blair is now claiming with "our values". Many Islamic beliefs conflict with Capitalism.

I'm sure that I've missed some.
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Joined: May 7 2006, 11:31 PM

Dec 20 2006, 03:01 PM #3

Venezuela, Oil Producers Buy Euro as Dollar, Oil Fall (19/12/2006)
http://www.energia.gr/indexenbr.php?new ... 22&lang=en
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Joined: Jan 24 2006, 10:57 PM

Mar 27 2007, 04:58 PM #4

Tue 27 Mar 2007
 

A view of a petrochemical complex in Assaluyeh on Iran's Persian Gulf coast May 28, 2006. Picture taken on May 28, 2006. Iranian officials have said for months that more than half the OPEC member's customers switched their payment currency away from the dollar as Tehran seeks to diversify its reserves.
REUTERS/Morteza Nikoubazl

China shifts to euros for Iran oil
By Chen Aizhu

BEIJING (Reuters) - China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moves to diversify its foreign reserves away from U.S. dollars.

The Chinese firm, which buys more than a tenth of exports from the world's fourth-largest crude producer, has changed the payment currency for the bulk of its roughly 240,000 barrels per day (bpd) contract, Beijing-based sources said.

Japanese refiners who buy about 500,000 bpd of Iranian crude, nearly a quarter of Iran's 2.2 million-bpd shipments, continue to pay in dollars but are willing to shift to yen if asked, industry sources and officials said separately.

Iranian officials have said for months that more than half the OPEC member's customers switched their payment currency away from the dollar as Tehran seeks to diversify its reserves, but news of the Zhenrong change is the first outside confirmation.

The price of the oil is still based on dollar quotes.

The shift, being watched closely by foreign exchange traders, comes amid an extended row between Tehran and Washington over Iran's nuclear programme.

China, which depends on Iran for about 12 percent of its imported crude oil, has at times used the threat of its United Nations veto to blunt Western measures.

The UN imposed new sanctions on Iran on Saturday as Tehran refused to halt its nuclear programme, targeting arms exports and 28 Iranian individuals and entities.

Iran's central banker told Reuters earlier on Tuesday that Tehran had cut its holding of U.S.-dollar assets to a minimum level of around a fifth of its foreign reserves in response to U.S. hostility, still enough to handle major shocks.

CHINA SWITCHES EARLY

"Most of China's purchases have shifted to euro. It's not difficult so long as our banks can handle that," said a Chinese state oil trader.

Hojjatollah Ghanimifard, head of international affairs at the National Iranian Oil Company (NIOC), told Reuters last week that around 60 percent of its oil income was in non-dollar currencies as almost all of Iran's European clients and some of its Asian customers had agreed to make non-dollar payments.

Iran is China's third-largest crude supplier with daily volume of 335,000 barrels last year. Sinopec Corp. <0386.HK>, Asia's top refiner but a minor lifter of Iranian oil, is still paying in U.S. dollars, said a Sinopec trader.

Japanese buyers, including top refiner Nippon Oil Corp. <5001.T>, said they had all received inquiries from Iran to pay on non-U.S. dollar terms, but were awaiting an official request.

"We are looking at it so that we can switch the currencies any time, but we have not gotten any official requests from them (NIOC). We are doing the transactions in dollars (now)," Nippon Oil chairman Fukuaki Watari told reporters last week.

Sources with other majors refiners concurred.

Iran ranks as Japan's third-largest crude supplier so far this year with daily rate of just under 500,000 bpd.

Tokyo has cautioned world powers against including oil in sanctions they may impose on Iran for its refusal to suspend atomic work, which the U.S. says is aimed at developing a nuclear weapon, but Tehran insists is for generating electricity.

Iran's major European customers include Royal Dutch Shell , France's Total and Spain's Repsol . The United States has banned imports of Iranian crude since 1995.

(Additional reporting by Ikuko Kao in Tokyo)

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Last updated: 27-Mar-07 06:47 BST

source: The Scotsman
In some ways she was far more acute than Winston, and far less susceptible to Party propaganda. Once when he happened in some connection to mention the war against Eurasia, she startled him by saying casually that in her opinion the war was not happening. The rocket bombs which fell daily on London were probably fired by the Government of Oceania itself, "just to keep the people frightened." -- George Orwell, 1984
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Joined: Nov 26 2005, 01:46 AM

Sep 29 2009, 12:01 PM #5

Expect the bombs to drop any day now:
Iran shifts to euro from dlr in calculating fund value
Mon Sep 21, 2009 7:57am EDT

TEHRAN, Sept 21 (Reuters) - Iran has replaced the U.S. dollar with the euro in calculating the value of its Oil Stabilisation Fund (OSF), Iranian media reported on Monday.

The decision was made earlier this month by President Mahmoud Ahmadinejad, based on a recommendation by the board of directors of the fund, the Poul business daily reported, without citing any official sources.

State radio said the move was taken because the government wished to protect itself from the fragility of the U.S. economy and the weak dollar.
The Central Bank of Iran, contacted by telephone, declined to comment.

The OSF, which forms part of Iran's foreign exchange reserves, is a contingency fund set aside by the government to cushion the economy against fluctuating international oil prices and help both the public and private sectors with their hard currency needs by extending loans.

The sizes of the OSF and the overall foreign exchange reserves are not regularly revealed to the public. Ahmadinejad said last December that the OSF was worth the equivalent of over &#036;23 billion, and state television reported at the time that the reserves exceeded &#036;80 billion.

The decision on calculating the OSF is the latest in a series of efforts by Iran, which is diplomatically hostile to the United States, to reduce the role of the dollar in its economy.


Iran has pushed for the Organization of the Petroleum Exporting Countries to switch from the dollar when calculating international oil prices, though it has so far received little support for the initiative.


The Iranian central bank has said it has been diversifying its reserves away from the dollar, but has not revealed details.
�To those who are afraid of the truth, I wish to offer a few scary truths; and to those who are not afraid of the truth, I wish to offer proof that the terrorism of truth is the only one that can be of benefit to the proletariat.� -- On Terrorism and the State, Gianfranco Sanguinetti
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