Iran threatens to drop trade in 'filthy' foreign currencies

phantom power

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Tue Aug-10-10 10:03 AM
Original message

Iran threatens to drop trade in 'filthy' foreign currencies

Filthy! Filthy currencies!

Iran planned to stop all trade and oil exports in dollars and euros in retaliation against Western sanctions over its nuclear program, a top official said Tuesday.

"We are going to remove dollar and euro from our foreign currency basket and replace them with rial and all other currencies of the countries which accept to cooperate with us," leading economic daily newspaper Doniye e-Ektesad quoted First Vice President Mohammad Reza Rahimi as saying. "These currencies are filthy, and we will no longer sell our oil in dollar and euro," Rahimi reportedly told a meeting of education officials.

He did not say when the plan would go into effect or how Iran was going to implement the decision as the second largest exporter in the Organization of Petroleum Exporting Countries (OPEC), in an energy market dominated by the dollar.

Read more: http://www.nypost.com/p/news/international/iran_threatens_to_drop_trade_in_QgyAEzYrGEpttuffSk09AI#ixzz0wDQabIqf

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dipsydoodle

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Tue Aug-10-10 10:16 AM
Response to Original message

1. "dominated by the dollar"

That's due to the petrodollar recycling program in the absense of which the US$ isn't really worth a light.

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no_hypocrisy

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Tue Aug-10-10 10:17 AM
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2. New dynamic on the term ''filthy lucre".

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derby378

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Tue Aug-10-10 10:22 AM
Response to Original message

3. Chickens for oil?

After all, some people thought "chickens for health care" was a great idea...

http://www.youtube.com/watch?v=qZezfjWox5s

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valerief

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Tue Aug-10-10 10:29 AM
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4. I thought fear of oil not trading in dollars was why we attacked Iraq.

Does this mean war with Iran now?

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dipsydoodle

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Tue Aug-10-10 11:07 AM
Response to Reply #4

5. Iraq was already trading in Euros

and it had cost the USA a huge bundle buying Euros in order to buy their oil. In addition - when the Euro escalated in value Saddam made quite enormous windfall profits which more than offset his intial losses when he first made the change.

Broadly speaking its only the petrodollar recycling scheme which allows the US to print money unabated.

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valerief

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Tue Aug-10-10 05:45 PM
Response to Reply #5

6. Ah, I just looked it up. Iraq began trading oil in euros in 1999. I thought it

Edited on Tue Aug-10-10 05:47 PM by valerief

happened in 2001. Thanks.

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dipsydoodle

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Wed Aug-11-10 03:28 AM
Response to Reply #6

7. Yes - if you check back

you should find an explanation for why Saddam lost a bundle in doing so - cutting his nose to spite his face as it where. It was , as I'd mentioned , change in the Euro / US$ exchange rate which subsequently corrected that for Iraq.

Its also worth reading up on the history and nature of the petrodollar recycling program.

:hi:

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Kolesar

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Wed Aug-11-10 06:55 AM
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8. I recall that "The Iranians" were counterfeiting US cash

that was THE reason that the US designed multicolor bills with many security features.

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