Iran replaces dollar with euro in most oil dealings

[jpak]

http://www.mehrnews.ir/en/NewsDetail.aspx?NewsID=416994

TEHRAN, Dec. 5 (MNA) — Iran has started replacing dollar with euro in majority of its crude oil exchanges in the last several months, an informed source with Iran’s Oil Ministry said here on Tuesday.

Oil Ministry has taken the policy to substitute dollar with euro, and begun to implement it for most of its oil dealings, the source who spoke on the condition of anonymity told the Mehr News Agency.

“This can maintain the real value of Iranian oil,” he added.

<not much more>

[Larkspur]

1. Will Bush and cheney begin bombing Iran by New Years?

[FogerRox]

2. This is just wonderful, additionally:

Oil producers shun dollar
By Haig Simonian in Zurich and Javier Blas and Carola Hoyos in London
Published: December 10 2006

Oil producing countries have reduced their exposure to the dollar to the lowest level in two years and shifted oil income into euros, yen and sterling, according to new data from the Bank for International Settlements.

The revelation in the latest BIS quarterly review, published on Monday, confirms market speculation about a move out of dollars and could put new pressure on the ailing US currency.

Market liquidity is traditionally low in December, and many traders have locked in profits, potentially reinforcing volatility.

Russia and the members of the Organisation of the Petroleum Exporting Countries, the oil cartel, cut their dollar holdings from 67 per cent in the first quarter to 65 per cent in the second.

Meanwhile, they increased their holdings of euros from 20 to 22 per cent, the BIS said. The speed of the shift may help to explain the weakness of the dollar, which recently fell to a 20-month low against the euro and a 14-year low against sterling....

from:

< http://www.ft.com/cms/s/277471c2-8889-11db-b485-0000779e2340.html >

[Vincardog]

3. Any bets on how long until the Chinese float their currency and the BIG CRASH hits?

[phantom power]

4. My armchair prediction:

their first move will be to slow their purchase of American debt. China (and, I assume, other debt holders) are motivated to try and rein in our debt, but they are also highly motivated to avoid crashing our economy entirely. They will do their best to let the air out of our bubble as slowly as possible.