Iran General NewsIran may reduce use of dollar, Tehran papers say

Iran may reduce use of dollar, Tehran papers say

-

Bloomberg: Iran, the world’s fourth-largest oil exporter, plans to reduce its use of the U.S. dollar in world trade and increase use of the euro, two Tehran-based newspapers reported. By Marc Wolfensberger

Dec. 6 (Bloomberg) — Iran, the world’s fourth-largest oil exporter, plans to reduce its use of the U.S. dollar in world trade and increase use of the euro, two Tehran-based newspapers reported.

The Tehran Times said today Iran has started substituting euros for dollars in oil sales, citing an unidentified person at the Oil Ministry. Iran Daily reported Iran wants to cut its dollar-based transactions to a minimum, citing Minister of Economy Davoud Danesh-Ja’fari.

Iran’s policy of selling oil in U.S. dollars “has not changed yet,” said Hojatollah Ghanimifard, executive director for international affairs at National Iranian Oil Co., in a statement read to Bloomberg News from his office.

The U.S. and several European nations are pushing the United Nations to sanction Iran for its nuclear program. The dollar touched a 20-month low against the euro this week, and central banks in the Middle East including the United Arab Emirates have plans to convert some of their dollar reserves into euros.

Exporting nations “are only holding so many dollars because of all the trade in the currency, but if the trend begins to move out of it, then it’s going to be a positive for the euro and add to the negative sentiment on the dollar,” said David Mann, a foreign-exchange strategist at Standard Chartered Bank Plc in Hong Kong.

The dollar was at $1.3278 against the euro at 8:07 a.m. in New York, compared with $1.3317 late yesterday.

Iran’s oil export contracts for months have included a clause that allows the nation to seek payment in the euro and other currencies, creating a mechanism for a switch should Iran’s policy change, according to traders who buy Iranian oil.

Lender Blocked

Organization of Petroleum Exporting Countries members including Qatar earlier this week expressed concern about the falling dollar, saying output should be cut to drive prices higher.

Iran has repeatedly said it would limit dollar-based transactions following the U.S. decision in September to block one of Iran’s biggest state-owned lenders from doing business with the U.S. The U.S. Treasury on Sept. 8 blocked Bank Saderat for its alleged support of “terrorist organizations” such as Lebanon’s Hezbollah movement and Hamas in the Palestinian territories.

Iran exports 60 percent of its crude to Asia, 32 percent to Europe and 8 percent to Africa. It is the world’s fourth-largest exporter of crude and OPEC’s second-biggest member. The nation last month produced 3.76 million barrels a day, according to data compiled by Bloomberg.

Latest news

Iran, the Resurrection of the Concept of ‘Revolution’

These days, Iran’s political and social environment has witnessed massive storms, which have changed the meaning of all concepts....

Iran Regime’s Response to Protests Censorship and Violence

The Iranian regime’s leadership has reacted to the ongoing wave of protests over the death of Mahsa Amini, the...

Iran’s New Generation Seeks Nothing but Regime Change

In a silly and desperate statement, the Iranian regime’s foreign minister Hossein Amir-Abdollahian claimed that nothing special is going...

Iran’s Youths Broke the Spell of Fear

One of the main characteristics of the recent protests in Iran is the courage and fearlessness of the people,...

Iran Is on the Brink of a Revolution

The wall of fear has been broken. In many cities across Iran, women are taking to the streets, leading...

Iran’s Regime Claims To Fill Global Energy Gap Despite Crippled Petroleum Sector

In recent weeks, the Iranian regime’s officials have been constantly exaggerating their huge capacity in oil and gas reserves...

Must read

Iran chides France over nuclear rights

AFP: Iran on Monday urged Paris to take "a...

Iran raises objection at nuclear meeting

AP: Iran objected Monday to language in a document...

You might also likeRELATED
Recommended to you