Iran Asks Japan to Pay Yen for Oil, Start Immediately

[FourScore]

Iran Asks Japan to Pay Yen for Oil, Start Immediately (Update3)

By Megumi Yamanaka


The Japanese oil tanker Mogamigawa July 13 (Bloomberg) -- Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it is reducing holdings of the U.S. dollar.

Iran wants yen-based transactions ``for any/all of your forthcoming Iranian crude oil liftings,'' according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments ``effective immediately,'' according to the letter, dated July 10 and obtained by Bloomberg News.

The yen rose on speculation for an increase in demand for the currency, the result of Japan's annual 1.24 trillion yen ($10.1 billion) of oil imports from Iran. Central bankers in Venezuela, Indonesia and the United Arab Emirates have said they will invest less of their reserves in dollar assets because of the weakening currency.

``What else can Japan do but to accept the request, once the oil producer sent its wish?'' said Hirofumi Kawachi, an analyst at Mizuho Investors Securities Co. in Tokyo. ``The tensions between the U.S. and Iran are escalating, and it's Iran's measure to hedge risk.''

http://www.bloomberg.com/apps/news?pid=20670001&refer=worldwide&sid=aLaColVYu5LA

[StarryNite]

1. Things just keep getting better

and better. :sarcasm:

[Mr_Jefferson_24]

2. I think Iraq did something like this just before...

...we launched our illegal invasion.

[rainy]

3. many professionals claim that that is the exact reason we went into

Iraq. Saddam was threatening to switch to the euro and this would have crushed the American economy. There are many articles about this floating around.

[blues90]

11. That's what I heard too

This is some scary stuff , most americans are not even aware of what this will mean and it could end up with another war breaking out in Iran .

These are the times I feel like just giving up .

[Decruiter]

4. And away we go. The housing crisis and now this. But wait Iran, this stubborness is what

caused the US to have to remove Saddam in Iraq. Please Iran, just wait a few months okay, please. Let us get rid of Bush first, then demand payment in yen, okay? Most of us here in the US, we don't want another war.

[Decruiter]

5. Kicking up again, everyone heads up!!!! This is not good news.

[tbyg52]

12. Anybody in *Iran*

we could email and beg for a reprieve until November '08?

[Exultant Democracy]

6. Lets hope that no one going "Soros" on our currency right now

just a few asshole billionaires could screw us all right now with one greedy move.

[JacquesMolay]

7. Scary ...

.. you can buy a lot of dollars with yen these days.

[mmonk]

8. Looks like the quest to rule the world is heating up.

Darn non complicit countries are gonna ruin it for the US.

[OwnedByFerrets]

9. I can hear Daffy Duck now..........

"This Means Waaaaaaaaaaaaaaaar"
Any excuse is viable to this outlaw administration.

[snappyturtle]

10. I read this early this morning and I had lost all coordination to type!

I think this is very serious....that and the Russians pulling out of an arms deal....we're going to wish we had gotten 'series' about impeachment a year ago or better. imho