Posted on 05/10/2006 8:26:30 AM PDT by Grendel9
REGIONAL FX HEADLINES Wednesday, May 10, 2006
In July Iran will ditch the dollar in favour of the euro as the currency in which it will accept payments for its oil and natural gas exports, Iranian president Mahmoud Ahmadinejad announced Friday.
The switch, first mooted months ago, was expected but Ahmadinejad's decision comes just as Washington is stepping up pressure on other United Nations Security Council members to act against Tehran for flouting agreements taken with the UN's nuclear watchdog.
Ahmadinejad's announcement, made in Baku, Azerbaijan where the Iranian leader is attending a regional economics conference, appears aimed at weakening the United States' resolve to seek sanctions against Iran if it does not comply with the UN International Agency for Atomic Energy's demands.
Some observers beleive the Iranian move could deal a severe blow to the American currency as many central banks from oil importing nations could choose to stock up their currency reserves with euros rather than
"Qatar buys Euro for reserves The Qatar Central Bank is exchanging euro for dollars on global capital markets and could raise the percentage of its foreign exchange reserves held in Euros to 40%, a Qatar Central Bank official told Dow Jones Newswires.
The news comes as many GCC countries are understood to be considering currency reserve diversification to protect against a weaker US dollar."
---from another article in that source.
Watch for all our enemies to dump the dollar. It's economic terrorism.
Where is Jack Bauer when you really need him?
pong
That's gonna hurt.
One speech by Bush announcing the withdrawal of all U.S. military from Europe would be enough to permanently devalue the Euro to put it on par with the Mexican peso.
Maybe Iran would like their payment in JDAM's. I hear their accepted everywhere.
We need to stop importing and buy domestic. Screw all of these people.
Ruh roh
this is the real danger.
these guys can bankrupt the US economy in a day by changing the way they trade oil from dollars to euros.
all they need is for enough countries to get onboard. for example they can surely pick up venezuela...
Isn't this old news. Iraq went to the Euro before we invaded them and most of the Opecker countries went to the Euro years ago.
http://search.yahoo.com/bin/search?fr=ybr_sbc&p=Opec%20and%20the%20Euro
TEHRAN, Iran - Iran took a step on Friday toward establishing an oil market denominated in euros, a plan analysts described as highly unlikely to materialize but which in theory could have serious consequences for the U.S. economy.
Iranian state-run television said the country's oil ministry granted a license for the euro-denominated market, an idea first floated back in 2004, though just who would trade on it remains unclear. If the market were to succeed — or if Iran simply demanded payment for its oil in euros — commodities experts said it could lead central bankers around the world to convert some dollar reserves into euros, possibly causing a decline in the dollar's value. But if one day the world's largest oil producers allowed, or worse demanded, euros for their barrels, "it would be the financial equivalent of a nuclear strike," said A.G. Edwards commodities analyst Bill O'Grady.
Ohh, that's really scary kids! But let's read on.
O'Grady said there are practical reasons why the Iranian threat is an empty one.
For starters, Iran is not a very attractive site for a market, given the volatile nature of its politics, the U.S. sanctions against it and the lack of a fair legal system. Moreover, there is no indication that the European Union is interested in vying to become the world's central bank, which requires a willingness to run large currency deficits, he said. For the U.S., that has meant allowing cheap imports to undermine the strength of some major industries, including textiles, autos and electronics manufacturing.
PFC Energy oil analyst Jamal Qureshi said the fears stirred up by a hypothetical euro-denominated oil market in Iran or anywhere else are overblown, not least because the oil trade is just a small component of the overall global economy.
http://news.yahoo.com/s/ap/iran_oil_euros;_ylt=Agq7AmQ5gHFwUpzROzmdlzQDW7oF;_ylu=X3oDMTBhcmljNmVhBHNlYwNtcm5ld3M-
And of course should Iran decide to do something stupid, like shut down the SOH, who would go over there to bring the smack down? France? Germany? Spain? I don’t think so. Oh well, euros it was nice dream while it lasted.
This is HUGH and series. I'm stuned. Not. Next time put a sarcasm tag on it.
All of the Third World runts and despots like Ahmadjihad, Chavez, etc., need to remember that when push comes to shove, the U.S. Dollar is backed not by gold, not by silver, not by oil, but by many many spheres of exceptionally pure plutonium, which are mounted on extremely accurate launch platforms, and/or carried by swift, silent and damn near undetectable aircraft.
The world needs to understand something: if they want to start the last War, and if they wish to wage warfare against the United States, they can go right ahead and start it, but by God, we will finish it, and they better like the idea of living in animals skins and eating all their meals by campfire light.
They'll bankrupt the EU before the US. The currency is only as strong as its economy.
Not to mention that the countries using the Euro historically hate each other
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