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Iranian oil bourse - anyone been reading about this?

fascinating considering the past few years activities/rhetoric concerning Iran and the USA etc etc etc

http://en.wikipedia.org/wiki/Iranian_Oil_Bourse
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well if you're of the school of thought that all Washington's obsession is not with oil but with the indexation of oil to the $US then...the rest follows?
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have heard sometime ago about oil being traded in Euro's , a little surprised that Iran would accept payment in Yen or even Roubles tho.

I've never quite understood what the deal is about this tho, at the end of the day if you are earning $US by selling oil and you dont want them $ then sell and convert into the currency you prefer...

it would only be an issue if the $US completely capitulated - which isnt inconceivable lol - but for the meantime the fall in USD remains relatively orderly and what I've said would hold, after all you can forward sell currencies too eg I know I'm getting a million USD in a months time so I do a deal to convert at todays rate with delivery in a month. Standard futures arrangement really

but yeh these type of changes in the capital markets are a sign that the world is starting to increasinly fear the collapse of US and USD and prepare for it.

only a few years ago a Euro bought $0.85c now $1.48
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peat this is largely about Iran avoiding US sanctions - US administration was starting to crack down on the US conversion leg of any oil transaction with Iran...
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dunno bout the sanctions (an incentive to go live but maybe not all the motivation) - as I do believe they've had this on the cards prior to axis of evil days

I see it as Iran and possibly other OPEC nations taking control of their own market trading in currencies that suit their customers not the US

if you don't need dollars to buy oil thats a lot of dollars countries don't need to hold, potentially

interesting times
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bob daktari said:
dunno bout the sanctions (an incentive to go live but maybe not all the motivation) - as I do believe they've had this on the cards prior to axis of evil days


Well US sanctions have been in place since the Tehran embassy bizness, and it is well commentated on that instituions (particularly in low risk climate these days) were acceding to US pressure and stopping US dollar transactions with Iran.

But yes, it also has the effect of removing the oil-forced support of the US dollar - and if euro oil becomes a big thing, that will knock out that implicit support for the dollar...
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doh... the revolution... damn my eyes and friday brain
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quote:
It would take only a few major oil exporters to switch from the dollar to the euro - or the yen - to fatally bomb the petrodollar mothership. Venezuela, Norway and Russia are all ready to say goodbye to the petrodollar. France officially supports a stronger role for the euro in international oil trade.

It may be a long way away, but ultimately the emergence of a new oil marker in euros in Kish will lead the way to the petroeuro global oil trade. It makes total sense. The European Union imports much more oil from OPEC than the US, and 45% of Middle East imports also come from the E.U.

The symbolism of the Iranian oil bourse is stark; it shows that the flight from the US dollar is irreversible – and so would, sooner rather than later, the capacity of Washington to launch wars on credit. But at this early stage in the game, only one thing is certain: the Empire will strike back.


www.atimes.com/atimes/Global_Economy/JB21Dj07.html

one of the artilces I've read this week that promopted the thread
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Qatar is considering removing the U.S. dollar peg from its currency, the riyal, as the dollar’s value continues to drop, Iran’s PressTV reported March 10, citing Qatari Prime Minister Sheikh Hamad bin Jasim bin Jaber al-Thani. The news comes after Hamad in January said Qatar would disconnect the riyal from the U.S. dollar over the next six months
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looks like there's more than one way to beat America

hit 'em where it hurts - in their back pocket
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peat said:
Qatar is considering removing the U.S. dollar peg from its currency, the riyal, as the dollar’s value continues to drop, Iran’s PressTV reported March 10, citing Qatari Prime Minister Sheikh Hamad bin Jasim bin Jaber al-Thani. The news comes after Hamad in January said Qatar would disconnect the riyal from the U.S. dollar over the next six months


What's the impact?
Would have thought Qatar's impact would have mainly been oil and that would have been being traded in USD?
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Most of the major Central Banks have just made another co-ordinated attempt to inject cheap liquidity into the world financial markets to ease the stress, but I'm not so sure its the best thing to do here...

Interesting times....
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garethw said:


What's the impact?
Would have thought Qatar's impact would have mainly been oil and that would have been being traded in USD?

well I dont know Gareth, it is an obscure country and individually this will have little impact but it all adds to the picture of USD losing its reserve status.... it wont happen overnight but momentum is building.