Iran Dumps Dollar in Foreign Oil Sales

[Brahmaputra Mail]

The havoc we see in the Middle East is insignificant to what happens when you have great powers fighting each other in a multi polar world.

The last time we had a multi polar world the world was nearly destroyed in a nuclear holocaust.

Prior to that (WW2 era) 60 million died in a world war that could have been placed us all under the control of a tyrannical dictatorship that would make North Korea seem pleasant.

The Napoleonic era. Same story.

It goes on and on.

The records of history show us that having hegemony brings stability. As it did when Great Britain ruled the waves and as it does now with the US.

So sure US hegemony has a body count but it pales in comparison to the multi polar eras.

I'm sure we're gonna meet that 60 million mark very soon. It's just that these killings are happening at a slower pace.

 

[Hamartia Antidote]

Iran Dumps Dollar in Foreign Oil Sales

Iran has switched to euro in its foreign oil trade, in a bid to cut reliance on the US dollar. After the removal of sanctions, Tehran would also want to recover in euros some of its previously frozen assets.

Iran has turned away from the US dollar in oil trade and is denominating in euros all new and outstanding oil contracts with companies, including French oil and gas giant Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia’s Lukoil, a source at National Iranian Oil Co told Reuters.

"In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the source said.

Lukoil and Total declined to comment, and Cepsa did not respond to a request to comment.

Iran has also told its trading partners who owe it billions of dollars that it wants to be paid in euros rather than US dollars.

The source explained that Iran’s central bank adopted a policy to carry out foreign trade in euros while the country was under sanctions.

"Iran shifted to the euro and cancelled trade in dollars because of political reasons," the source underscored.

Iran was allowed to recover some of the funds frozen under US sanctions in currencies other than dollars, including the Omani rial and UAE dirham.

According to US officials, nearly $100 billion of Iran’s assets were frozen abroad, and around 50 percent of them Tehran was able access after the removal of sanctions.

Sanctions against Iran were lifted on January 16, by both the US and the European Union. The move came amid oversupply in the global oil market, with the Organization of the Petroleum Exporting Countries (OPEC) refusing to cut down its daily output.

It is not clear how much of the funds are oil dues that Iran wants back in euros. For instance, India owes Tehran around $6 billion for oil supplied during the sanctions years.

"Ditching the dollar, Iran and India have agreed to settle all outstanding crude oil dues in rupees in preparation to future trade in their national currencies. The dollar dues […] would be deposited in National Iranian Oil Co account with Indian banks," The Indian Express recently reported.

For many years, Iran has pushed to replace dollar with euro in international oil trade. In 2007, Tehran failed to persuade OPEC to switch away from the US dollar which then-president President Mahmoud Ahmadinejad called a "worthless piece of paper."

Switching oil sales to the euro makes sense for Iran since Europe is its major trade partner. In late January, The Wall Street Journal reported that Iran had agreed to lower price of its crude for Europe, following a similar move by Saudi Arabia. At the same time, Tehran increased crude prices for Asia.

Read more: http://sputniknews.com/business/20160206/1034326281/iran-oil-euro.html#ixzz3zPMHTaSv

yes..yes we know..they make this announcement every year

2007 Iran stops selling oil in U.S. dollars -report| Reuters

2008 Iran Ends Oil Transactions In U.S. Dollars - CBS News

2012 Iran presses ahead with dollar attack - Telegraph

2013 Mish's Global Economic Trend Analysis: Iran Removes Euro and Dollar From Trade Exchanges; More Symptoms of Iranian Hyperinflation

Jan 2015 Iran dumps U.S. dollar in favor of Chinese, Russian currencies

oh and don't forget this one..from 2006
Iran’s euro-denominated oil bourse to open in March: US Dollar Crisis on the Horizon | Global Research - Centre for Research on Globalization

 

[gambit]

yes..yes we know..they make this announcement every year

2007 Iran stops selling oil in U.S. dollars -report| Reuters

2008 Iran Ends Oil Transactions In U.S. Dollars - CBS News

2012 Iran presses ahead with dollar attack - Telegraph

2013 Mish's Global Economic Trend Analysis: Iran Removes Euro and Dollar From Trade Exchanges; More Symptoms of Iranian Hyperinflation

Jan 2015 Iran dumps U.S. dollar in favor of Chinese, Russian currencies

oh and don't forget this one..from 2006
Iran’s euro-denominated oil bourse to open in March: US Dollar Crisis on the Horizon | Global Research - Centre for Research on Globalization

Very good, sir.

You should save these links for future references to the inevitable few who can barely balance a personal checkbook but have no problems making pronouncements about global economic issues.

 

[Hamartia Antidote]

Very good, sir.

You should save these links for future references to the inevitable few who can barely balance a personal checkbook but have no problems making pronouncements about global economic issues.

Next January/February they will announce it yet again....

 

[Tiger Genie]

Oh never mind then.

you're having way too much fun.

No problem. China and Russian will support Iran.

stop scaring Iran will ya

There are no more wars between major powers because of nuclear weapons, that's it.

Why do you think America runs away crying from North Korea, while they were happy to invade 3 non-nuclear countries in the past decade alone?

Their appetite for war suddenly diminishes when other people can fight back.

how then do you explain 5 years of Americans bombing Pakistan with impunity? Pakistan has had nukes too

 

[mike2000 is back]

Next January/February they will announce it yet again....

Good for propaganda purposes obviously.

Anyway, eventhough this news is just another propaganda, its still a good propaganda since it involves Europe's currency the Euro. Hopefully, they start trading in our pounds as well.........though I doubt that will be a good propaganda article.

 

[Hamartia Antidote]

Good for propaganda purposes obviously.

Anyway, eventhough this news is just another propaganda, its still a good propaganda since it involves Europe's currency the Euro. Hopefully, they start trading in our pounds as well.........though I doubt that will be a good propaganda article.

Well according to one of those links they supposedly dumped the Euro in 2013...
Maybe they forgot to add the pound. Not sure why they'd have some love for you guys over Europe!

But hey maybe they are saving it for next year!

 

[Metanoia]

I would like to see Romanian hegemony @flamer84

 

[mike2000 is back]

Well according to one of those links they supposedly dumped the Euro in 2013...
Maybe they forgot to add the pound. Not sure why they'd have some love for you guys over Europe!

But hey maybe they are saving it for next year!

Lol well that's because the U.S is the 'GREAT SATAN' while Britain is an old cunning fox ........the E.U meanwhile is the U.S/U.K's friend axis of evil(the lesser evil). Lol

Khamenei Calls U.S. the ‘Great Satan,’ Says Israel Won’t Exist in 25 Years Just Hours Before Congress Debates the Iran Deal | TheBlaze.com

Why is Britain an 'old fox' in Iranian media rhetoric? - BBC News

So there you go.

 

[VCheng]

you're having way too much fun.

What other options do I have here?

The dollar dies three times a week on PDF.

 

[ashok321]

what people don't realize is to transact in euros you need a dollar !

Garbage!

Forex trade. People buy and sell many currencies in billions everyday.
What is USD "role play" there?

Iran is quoting its crude in Euros now.
Will be paid in Euros.

What is USD "role play" there?

 

[jetray]

What other options do I have here?

The dollar dies three times a week on PDF.

Have fun while it lasts. Well things dont happen all of a sudden but it will certainly be long ride.
Check wheres the canadian dollar today.

 

[my2cents]

Every country who are against US hegemony should follow such course. Iran has done a favour to India by accepting Indian Rupees as payment.

It is only 20% of all imports from Iran are traded in rupees. That is the amount they need to trade with India. If we can expand our export basket then we may increase rupee trade dramatically.

 

[Providence]

Garbage!

Forex trade. People buy and sell many currencies in billions everyday.
What is USD "role play" there?

Iran is quoting its crude in Euros now.
Will be paid in Euros.

What is USD "role play" there?

You don't quote random numbers but competitive market clearing rates which is happening in dollars. Even if Iran might chose to disregard it while quoting, the customers of that oil won't before purchasing

 

[Tshering22]

America will be busy for another 5 years or so with ISIS. But after that they'll start looking for a target to attack. America never goes 10 years without a war.

If a republican gets into office all bets are off, they might decide to take on ISIS and Iran in one giant offensive. That's how crazy and hawkish some of those Republicans are (ie Ted Cruz, Trump).

Well if a Republican comes in, then the world will anyway enter WW3. Those neocons are rabid and will do anything for their corporate financial backers in the arms industry.

What's the alternative to US hegemony?

We've tried a multipolar world before (in world war 1, and world war 2 for example), it didn't work and the world was nearly destroyed because of it. We can't live in peace unless there's a superpower to hold everyone into line. As soon as there's no clear world leader countries start to fight each other trying to claim the superpower crown.

Sure American is not perfect, they're an empire trying to protect its own interests after all, but they have improved the living standards of billions across the globe and ushered in a period of relative peace.

WW1 and WW2's problem was that there were colonies involved. These powers were located right beside each other and had their colonies fight for their personal interests.

Also in those days, there was no power from a developing world; this is not the present case any more.

A unipolar world is a disaster. There have to be many normalizing powers which involve developing countries get in on the development programmes and initiatives.

It is only 20% of all imports from Iran are traded in rupees. That is the amount they need to trade with India. If we can expand our export basket then we may increase rupee trade dramatically.

For export you need factories, for factories you need land, and for land you need LAB which the opposition is holding the RS hostage.

Only ordinance can get this passed, expanding our export basket and of course, then our reach of Rupee.