Dude, I need to buy dollars
Posted on 06/02/2010 6:59:13 AM PDT by Daus
Iran's central bank will sell 45 billion euros from its reserves to buy dollars and gold ingots, a report on the website of state-owned Press TV said on Wednesday.There was no announcement of the sale on the bank's website and officials at the bank declined comment.
Following the report, the euro eased slightly versus the dollar from around $1.2227 to $1.2213.
Traders said the news was having limited impact on the euro, and some in the market were sceptical about whether Tehran would be able to buy significant amounts of dollars, given that U.S. depository institutions are banned from processing transfers involving the country.
Last month Iran's central bank governor hinted at a move away from the euro, reversing several years of Tehran publicly shunning the U.S. currency in keeping with its political hostility towards Washington.
"Considering that the value of the euro is plummeting and that of the dollar is increasing, we will be examining the issue of changing the composition of Iran's hard currency basket," Mahmoud Bahmani was quoted as saying in the May 18 edition of Hezbollah daily. Iran does not usually disclose the value of its reserves, though state television reported last December they exceeded $80 billion.
The report on the sale broke after official sources told Reuters some of the world's richest central banks would continue investing in Europe's ailing single currency, supporting its reserve status despite the sovereign debt crisis plaguing the region.
The liquidity of both the euro and the dollar and the difficulty of switching large portfolios to other currencies mean there are no alternatives to them in the near term, the sources in Brazil, India, Japan and South Korea said in separate interviews.
Last November, Bahmani said Iran's then policy of moving away from the dollar, both in its reserves and in the currency it received for its oil exports, had been beneficial.
At a 2007 OPEC summit, Iran -- the world's fifth-largest oil exporter -- suggested oil should be priced in a basket of currencies rather than dollars, but it failed to win over other member states except Venezuela.
Ahmadinejad told reporters at that time the dollar was a "worthless piece of paper."
Euroe’s was a bad Idea anyway
the only good news about the US economy is that it doesn’t suck as much as Europe
Hey Iran, how did that Euro bourse thing work out?
Soon I'll be able to buy stacks of souveneir Euros on eBay too.
Yes, any minute now, the world is going drop the US dollar to trade oil in euros. All thanks to that great economic visionary, the Islamic Republic of Iran.
Let’s use the Goldfinger option and make their $45 billion euro pile of gold radioactive.
If America wait a little the amout they want to trade will be worth about $1.95.
TEHRAN, Iran (AP) - The presidents of Venezuela and Iran boasted Monday that they will defeat U.S. imperialism together, saying the fall of the dollar is a prelude to the end of Washington’s global dominance.
Hugo Chavez’s visit to Mahmoud Ahmadinejad in Tehran followed a failed weekend attempt by the firebrand duo to push the Organization of Petroleum Exporting States away from trading in the slumping greenback.
Their proposal at an OPEC summit was overruled by other cartel members led by Saudi Arabia, a strong U.S. ally. But the cartel agreed to have OPEC finance ministers discuss the idea, and the two allies’ move showed their potential for stirring up problems for the U.S.
The alliance between Chavez and Ahmadinejad has blossomed with several exchanged visits—Monday’s was Chavez’s fourth time in Tehran in two years—a string of technical agreements and a torrent of rhetoric presenting their two countries as an example of how smaller nations can stand up to the superpower.
“Here are two brother countries, united like a single fist,” Chavez said upon his arrival in Tehran, according to Venezuela’s state-run Bolivarian News Agency.
“God willing, with the fall of the dollar, the deviant U.S. imperialism will fall as soon as possible, too,” Chavez said after a two-hour closed meeting with Ahmadinejad, the Iranian state news agency IRNA reported.
http://www.breitbart.com/article.php?id=D8T107680&show_article=1
Goldbug ping
Mail me to get on or off the Free Republic Goldbug Ping List.
Metals set to rise? We will see.
BTTT
The article indicates the existence of at least one rational Iranian government official. He is in the difficult position of protecting his head and the national financial assets.
If he buys all gold he runs up the price and has no means of transacting on the world market. If he buys all US$ he defies the religious wackos who act on nothing but faith.
His problem is that for the present at least, God apparently wills the Euro to be devalued
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