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Iran stops selling oil in U.S. dollars!!!!
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| hardcore trancer |
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TEHRAN (Reuters) - Iran has completely stopped selling any of its oil for U.S. dollars, an Iranian news agency reported on Saturday, citing the oil minister of the world's fourth-largest crude producer.
The ISNA news agency did not give a direct quote from Oil Minister Gholamhossein Nozari. A senior oil official last month said "nearly all" of Iran's crude oil sales were now being paid for in non-U.S. currencies.
For nearly two years, OPEC's second biggest producer has been reducing its exposure to the dollar, saying the weak U.S. currency is eroding its purchasing power.
Iranian President Mahmoud Ahmadinejad, who often rails against the West, has called the U.S. currency a "worthless piece of paper."
Foes since Iran's 1979 Islamic revolution, Tehran and Washington are also at odds over Tehran's disputed nuclear programme as well as over policy in Iraq.
"In line with the policy of selling crude oil in currencies other than the U.S. dollar, currently the sale of our country's oil in U.S. dollars has been completely eliminated," ISNA reported after talking with Nozari.
Nozari told ISNA: "In regards to the decrease in the dollar's value and the loss exporters of crude oil have endured from this trend, the dollar is no longer a reliable currency."
"This is why, at the meeting of the heads of states, Iran proposed to OPEC members that a currency (for oil exports) would be determined that would be reliable and would not cause any loss to exporter countries," he said.
At a November summit of Organization of the Petroleum Exporting Countries heads of state, Iran suggested oil should be sold in a basket of currencies rather than dollars, but failed to win over other members except Venezuela.
Ahmadinejad and his Venezuelan counterpart, Hugo Chavez, are vocal critics of U.S. influence in the world.
Hojjatollah Ghanimifard, international affairs director of the state owned National Iranian Oil Company, last month told Reuters that most of Iran's oil export earnings were in euros, with some in yen.
(Reporting by Zahra Hosseinian, writing by Fredrik Dahl, editing by Anthony Barker)
http://uk.news.yahoo.com/rtrs/20071...-02bfc7e_1.html
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This is absolutely huge!!!I wonder how the U.S will response to this?
This is bad news for the U.S economy and I doubt that Bush will just sit back and let it just happen. |
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| Lebezniatnikov |
The devaluation of the dollar isn't really that bad at all - in fact, in some respects it's quite good. When the dollar goes down in value relative to other currencies in the world, it's true that Americans will have to spend more for foreign goods. But on the flip side, American exports become more affordable around the world. So within a short period of time you will see demand for imports in the US go down, but demand for American exports abroad go up. As that happens, America's atrocious balance of trade will start to level again. In other words, instead of running massive trade deficits each year, the US will come closer to running in the black again.
Furthermore, it's been shown the government deficits are closely related to trade deficits - thus as the trade deficit comes down, it isn't unreasonable to assume that the government budget deficit will as well. So from a fiscal point of view, the devaluation of the dollar is pretty good news. It really doesn't have much to do with the relative "prestige" of a currency so much as how many goods that currency can purchase abroad relative to other currencies. So if you're an American, don't make any big travel plans, but if you're not an American, it will be cheaper to visit the US now than it has been for many years. |
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| Lebezniatnikov |
| And as it relates to oil, I can think of worse things than having to pay a bit more for foreign oil... if anything, maybe that will provide the economic incentive the government needs to get serious about exploring alternative energy sources. |
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| ams.rld |
| quote: | Originally posted by Lebezniatnikov
So if you're an American, don't make any big travel plans, but if you're not an American, it will be cheaper to visit the US now than it has been for many years. |
And this is good for Americans' now they won't be able to travel overseas? how is that a good thing for people that enjoy traveling? |
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| Lebezniatnikov |
| quote: | Originally posted by ams.rld
And this is good for Americans' now they won't be able to travel overseas? how is that a good thing for people that enjoy traveling? |
Economics is never good for everyone in every facet of their life. I never said that is was - quite the contrary, I prefaced my post by saying that the devaluation of the dollar is good in SOME respects. Not all.
And anyway, Americans are still able to travel - it will just now be somewhat more expensive to go to places like Canada and Europe, where the dollar is undervalued. |
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| ams.rld |
| quote: | Originally posted by Lebezniatnikov
Economics is never good for everyone in every facet of their life. I never said that is was - quite the contrary, I prefaced my post by saying that the devaluation of the dollar is good in SOME respects. Not all.
And anyway, Americans are still able to travel - it will just now be somewhat more expensive to go to places like Canada and Europe, where the dollar is undervalued. |
I swear I hope me Euros are going to be worth two dollars some time soon...that way I get to travel more often to the US. But I swear I have seen so much of that nation. It's just terrifying and I really do believe that the dollar needs to be strong so that more American's can see the world for what it really is. Better than their nation!:nervous: |
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| Lebezniatnikov |
| quote: | Originally posted by ams.rld
I swear I hope me Euros are going to be worth two dollars some time soon...that way I get to travel more often to the US. But I swear I have seen so much of that nation. It's just terrifying and I really do believe that the dollar needs to be strong so that more American's can see the world for what it really is. Better than their nation!:nervous: |
It's very true that the great majority of American citizens lead sheltered lives. If that needs any proving, just look at the fact that when elected, Bush had never even been to Europe before!
But I would argue that there are parts of the US that function better than Europe, just as there are parts of Europe that function better than in the US. Which is better? I think it's all a matter of perspective. For instance, the government provides more for the population in most European states, and as a result things like infrastructure and access to health care are in better shape - but there's no culture of volunteerism in Europe as there is in the US, where the majority of people devote part of their free time to helping others at no incentive from the state. Sure sometimes there is mandatory service requirements, but the spirit of volunteerism is what is missing, which I think is one of the strengths of the States' democracy. |
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| Krypton |
| What's bad isn't so much the falling dollar, it's the debt the nation has incurred that is seemingly exponentially increasing. It could affect our credit worthiness. |
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| Q5echo |
| quote: | Originally posted by hardcore trancer
This is absolutely huge!!!I wonder how the U.S will response to this? |
no it's not. if youre an oil exporter in Iran it is, but that neither here nor there considering oil exportation in Iran is a state run business...because Iran sux donkey ballz.
| quote: | | This is bad news for the U.S economy and I doubt that Bush will just sit back and let it just happen. |
how? how does Iran selling their oil to other nations using another currency hurt us?
you know what hurts? our convincing of just about every major bank in Europe and Asia not to do business with Iran because they are a state sponsor of terrorism, thats what hurts. |
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| Fir3start3r |
| quote: | Originally posted by ams.rld
And this is good for Americans' now they won't be able to travel overseas? how is that a good thing for people that enjoy traveling? |
Welcome to travelling like the rest of the world buddy!  |
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| hardcore trancer |
| quote: | Originally posted by Q5echo
because Iran sux donkey ballz.
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Great reply there yank.:rolleyes:
| quote: | | you know what hurts? our convincing of just about every major bank in Europe and Asia not to do business with Iran because they are a state sponsor of terrorism, thats what hurts. |
lmao ya good luck with that!!even if they are this so called evil terrorists that you are making them to be there is not a damn thing anyone can do about them.;) |
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| Q5echo |
| quote: | Originally posted by hardcore trancer
Great reply there yank.:rolleyes: |
the question still stands. how?
do you know, or are you just being another ignorant Canadian kid that hates yanks not having too deep of a cognition reagrding anything important? tell us if you know or i'll be forced to think the latter.
| quote: | | lmao ya good luck with that!! |
too late. it's done. where have you been? hating yanks got you near-sighted again?
like i told Krypton, don't let hating someone or something develop into an entire worldview. it can make you look like a real dumbass sometimes |
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