http://www.aztlanelectronicnews.net/content/view/72/2/
Iran Begins Shift from Petrodollar to Eurodollar
Written by Daniel Maldonado
Friday, 08 December 2006
Two Iranian news agencies are reporting that Iran has begun its long
anticipated move away from the U.S. Dollar to the European Union's Euro as the
(Petrodollar and Eurodollar, respectively) method of payment for its oil
transactions.
The Iran Daily and the Tehran Times are both reporting that the Iranian
Minister of Economy, Davoud Danesh-Ja'fari, has stated that Iran is now keeping
its dollar based transactions to a minimum. Iran, the world's fourth largest
oil producer, has had plans recently for opening its own oil bourse. This is
intended to compete with London's and New York's oil exchanges, who cozily
share the oligopoly.
But recently China and before them, Russia announced that they too had
intentions on creating their own oil exchanges. Russia's plan also includes
using the Ruble instead of the Petrodollar or the Eurodollar.
Meanwhile, investors' expectations have sent the dollar plummeting to a
20 month low on news that Arab states would be cutting back on their dollar
inventories.
But the dollar remains king. Millions of transactions done worldwide
every day could eventually lead investors to see a bargain and step in and buy
the dollar, or so the U.S. hopes. And at what price will the sellers become
buyers?
With Iran, China and Russia offering new products and developing their
own markets and with the Arab nations cutting back on their dollar inventories,
we could be witnessing the end to the dollar hegemony.
