"Iran drops dollar from oil deals: report"

[Prada]

http://rawstory.com/news/afp/Iran_dr..._12082007.html

Major crude producer Iran has completely stopped carrying out its oil transactions in dollars, Oil Minister Gholam Hossein Nozari said on Saturday, labelling the greenback an "unreliable" currency.

"At the moment selling oil in dollars has been completely halted, in line with the policy of selling crude in non-dollar currencies," Nozari was quoted as saying by the ISNA news agency.

"The dollar is an unreliable currency, considering its devaluation and the oil exporters' losses," he added.

The world's fourth largest oil exporter, Iran has massively reduced its dependence on the dollar over the past year in the face of US pressures on its financial system.

The United States has successfully encouraged major European and Asian banks to cut their dealings with Iran in a bid to make the Islamic republic give way on its controversial nuclear programme.

Washington has also blacklisted major Iranian banks for alleged support of terrorism and seeking nuclear weapons, charges denied by Tehran.

Iran has reduced its assets in dollars held in foreign banks and urged OPEC to take collective action to price oil in other currencies such as the euro, instead of the US currency which is used across the world at present.

The fall of the dollar, which has weakened considerably against the euro and other currencies in the past 12 months, has affected the revenues of OPEC members because most of them price and sell their oil exports in the US currency.

[Dagron]

When the rest of the middle east does so as well, as they have already decided to (eventually) do, the dollar is in some serious shit...

[Pooks]

Well since the dollar has strengthened from the low of 1.4970 a couple of week ago to 1.45xx today.

Than in some way at least in the short-term this looks like a bad deal for the Iranians.

Yes I know the overall trend is the dollar losing ground on the EURO..

only in January, May, July, and prolly now December has the Dollar been stronger than the Euro. thats 4 out of 12 months.. so yah EURO is kickin our butt..

but..
Historically looking, in the big picture the argument could be made that this is the SUPPORT for the Dollar, and it will bounce back towards Ressistance from this point forward meaning that in about 5 years or so.. The U.S dollar will actually be worth more than the EURO.. why do i say this is...

cause yah the EURO first appeeard in 1999 at which point it was 1.17 to the dollar.. but hypothetically the EURO in 1992 was actually 1.47 compared to the U.S dollar.. than went to 1.17 in 99.. than .88 in 01? or so.. STRONG U.S DOLLAR... from that point on it devalued to 1.49 now.. which matches the 1.47 pretty much from 1992..

so there is historical support here, that will turn away alot of traders..

so in that aspect.. The Iranians by thinking POLITICS ahead of ECONOMICS might be really screwing themselves here, and could wind up in a year or so with a stockpile of a depreciating EURO.. while all the other OPEC nations get rich on a valuable U.S dollar.

[celticd]

if im not mistaken i believe saddam was the 1st leader of state to deal in euro instead of the dollar when selling crude oil

[Dagron]

That wasn't a factor in going to war with Iraq, now, was it. And neither is it a factor in why we are pushing for a war in Iran, now, IS IT?

[***xxx***]

Well since the dollar has strengthened from the low of 1.4970 a couple of week ago to 1.45xx today.

Than in some way at least in the short-term this looks like a bad deal for the Iranians.

Yes I know the overall trend is the dollar losing ground on the EURO..

only in January, May, July, and prolly now December has the Dollar been stronger than the Euro. thats 4 out of 12 months.. so yah EURO is kickin our butt..

but..
Historically looking, in the big picture the argument could be made that this is the SUPPORT for the Dollar, and it will bounce back towards Ressistance from this point forward meaning that in about 5 years or so.. The U.S dollar will actually be worth more than the EURO.. why do i say this is...

cause yah the EURO first appeeard in 1999 at which point it was 1.17 to the dollar.. but hypothetically the EURO in 1992 was actually 1.47 compared to the U.S dollar.. than went to 1.17 in 99.. than .88 in 01? or so.. STRONG U.S DOLLAR... from that point on it devalued to 1.49 now.. which matches the 1.47 pretty much from 1992..

so there is historical support here, that will turn away alot of traders..

so in that aspect.. The Iranians by thinking POLITICS ahead of ECONOMICS might be really screwing themselves here, and could wind up in a year or so with a stockpile of a depreciating EURO.. while all the other OPEC nations get rich on a valuable U.S dollar.

lol the 1,47 exchange rate was an arteficial exchange rate that had nothin to do with the real value, cause there was no euro until 2001. and since 2004 the $ lost 40% of its value, so I d say the opposite of u: the dollar will stabilize, but the € will remain much stronger.

[Amorphic]

lol the 1,47 exchange rate was an arteficial exchange rate that had nothin to do with the real value, cause there was no euro until 2001. and since 2004 the $ lost 40% of its value, so I d say the opposite of u: the dollar will stabilize, but the € will remain much stronger.

agreed

[Pooks]

lol the 1,47 exchange rate was an arteficial exchange rate that had nothin to do with the real value, cause there was no euro until 2001. and since 2004 the $ lost 40% of its value, so I d say the opposite of u: the dollar will stabilize, but the € will remain much stronger.

Lets look at the German Mark.. Eyeballing it, the German Mark represented about 80% of the EURO's value in 2001.. and maybe its 70% today..

CONVERSION RATE BETWEEN EURO and DM equaled 1 EUR = 1.95 DM
to make it easier for myself I'm just cut the DM value in half.

Here is my historical chart between USD and DM and than later the EURO..


People can analyze it anyway the want...

i do not see it as very likely that the USD drops to .40 against the EURO..
even if that move was to be streched over a 6 year period, would would still equate a serious breakdown in the trend.

my conclussion that the true trading range between these 2 developed continents is betweeen 1.20 and 0.8.. and we should eventually correct upward..

In which case the Iranians get screwed! LOL

[Logan13]

Lets look at the German Mark.. Eyeballing it, the German Mark represented about 80% of the EURO's value in 2001.. and maybe its 70% today..

CONVERSION RATE BETWEEN EURO and DM equaled 1 EUR = 1.95 DM
to make it easier for myself I'm just cut the DM value in half.

Here is my historical chart between USD and DM and than later the EURO..


People can analyze it anyway the want...

It could be very well possible the dollar drops down to .40 against the EURO..
that being streched over a 6 year period, would not equate any serious break in the trend.

But.. Tossing in the fact that in the early 70s Germany was still recovering from World War 2..

my conclussion that the true trading range between these 2 developed continents is betweeen 1.20 and 0.8.. and we should eventually correct upward..

In which case the Iranians get screwed! LOL

nice work