Posted on 02/16/2008 12:35:18 PM PST by forkinsocket
Feb. 15 (Bloomberg) -- Iran, the world's fourth-largest oil producer, may use the Russian ruble in trading on its new oil exchange, the country's ambassador to Moscow said.
"Big energy producers like Iran and Russia should try to free the world of dollar slavery," Ambassador Gholamreza Ansari said on Moscow's Ekho Moskvy radio station today.
The two nations already cooperate in nuclear energy and may start closer coordination of natural-gas production. Russia holds the world's largest gas reserves, followed by Iran, and together they produce of almost a fifth of the world's oil. The two share the goal of finding alternatives to a weakened U.S. dollar.
Iran plans to trade oil in more currencies than in its own rial to offer diversity, the ambassador said. The exchange will open Feb. 17, the country's official IRNA news service said this week. Iran has planned to open the exchange since 2005.
"I don't think it would have any impact on the oil market at all," said Kevin Norrish, an oil markets analyst at Barclays Capital in London. "I think it's more political than related to oil market prices or dynamics."
The ruble should be used as a "regional reserve currency," Russian First Deputy Prime Minister Dmitry Medvedev said earlier today in Krasnoyarsk, Siberia. Medvedev, who is also chairman of Russian gas exporter OAO Gazprom, is the front-runner to replace President Vladimir Putin in March 2 elections.
"The role of key reserve currencies is being reconsidered. We must take advantage of this," Medvedev said in a speech outlining his economic priorities.
Russia and other natural-gas producing countries should also form a group to coordinate production and sales of the fuel "as soon as possible," Ansari said. Iran a year ago proposed to set up a gas cartel similar to the Organization of Petroleum Exporting Countries.
Yawn
Same reaction here. A sad attempt at economic terrorism. The monetary equivalent of staging a hold-up at a lemonade stand.
Laughable.
Soros destroyed the Russian Rouble about 10 years ago.
Last I saw, exchange was about 33 Roubles to the dollar.
Soros is wanted in Russia for currency tampering. He was convicted in France of the same thing, but France foresook the Franc for the Euro and came out ok.
Soros has since turned his affections on the American Dollar and is working diligently to foster its destruction, at a handy profit potentially reaching hundreds of billions for him.
Yawn? Changing from dollar-based oil to rubles is an act of war.
Reserve currencies are supposed to be stable. That’s why they’re reserve currencies. It has nothing to do with politics, or rather when it does have something to do with politics the people who make it that way end up broke. The turban boys are welcome to do their exchanges in Zimbabwean dollars for all I care.
Yawn, is right... this will end the first time the dollar gains against the rubble.
(intentional sic)
Before any dollar doomsters get too excited, they need to consider the following Bloomberg headline: “Exxon Wins Freeze on $12 Billion in Venezuela Assets”. In truth Iran has more at risk than Venezuela, and it only takes one federal judge signing one court order to put all of Iran’s dollar’s at risk.
see:
www.bloomberg.com/apps/news?pid=20601087&sid=aGUnh8TmC_ac&refer=home
Hardly. As a sovereign nation, Iran should be able to conduct their foreign trade any damn way they see fit.
In fact . . . In light of the steep decline of the U.S. dollar against almost every major currency in the world over the last 5-6 years, any government that DOESN'T at least consider such a measure would be grossly derelict in its duties as a legitimate government.
There was a very good article in the Wall Street Journal a few weeks ago suggesting that President Bush’s recent trip to the midEast was to sustain the dollar as the benchmark currency, when he spoke to all the oil priniples. They suggested that Iran’s change away from the dollar (they then opined the Euro) would be an agreed-upon reason to have regime change in Iran. I.e. an act of war.
I don’t get it.
Oh... I get it. Oil buyers and sellers don’t use Iranian currency!
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