China buying oil from Iran using the Yuan, reveals Tehran ambassador in UAE

MercoPress ^ | Tuesday, May 8th 2012 - 22:37 UTC

[Olog-hai]

Iran is using the revenue to buy goods and services from China, Mohammed Reza Fayyad, Iran's ambassador to the United Arab Emirates, confirmed.

China is the biggest buyer of Iranian crude oil exports. The country buys some $20-30 billion of oil from Iran each year, but the US has been pressuring Beijing to join an international boycott of Iran over Tehran's nuclear program.

The Iranian ambassador's comments, reported by the Reuters news agency, confirmed a report in the Financial Times that claimed that Unipec (a subsidiary of the Chinese state-owned oil firm Sinopec) was buying the oil, as was another company called Zhuhai Zhenrong.

Meanwhile, China has been trying to promote usage of Yuan as an international currency as a rival to the dollar, including the establishment of a new offshore trading center in London alongside the existing center in Hong Kong.

According to the FT report, China has been providing the currency to Iran via Russian banks rather than its own domestic banks. …

[familyop]

India’s also buying oil from Iran without dollars, IIRC.

[RC one]

Our reserve currency status is slipping away. Not good. Not good at all.

[SunkenCiv]

• Obama: "I want to make sure we end before the call to prayer"
• Iran Deploys Troops, Ballistic Missiles To Eritrea [2008]

[lurk]

Let’s trade with them. We’ve got a surplus of Juans we can exchange for some Yuan.

[familyop]

"Our reserve currency status is slipping away. Not good. Not good at all."

I agree that it's not good. But because of regulations against manufacturing and other property rights activities great and small (e.g., small: zoning against manufacturing in remote areas, burdens against owner-builders), it is the future. A low dollar will forcibly clear the way against the anti-competition efforts of globals, busybody pensioners and their bureaucrats. As the trends of the political regulator class will apparently stand fast until their destruction of our western economy, the low dollar will be inevitable.

[SunkenCiv]

Thanks Olog-hai.