So, now the Ayatollahs are currency traders, huh?
Well, good luck, boys.
Over the last five years the Euro has lost 26% of its value against the US Dollar.
For the last 12 months, the Euro has been roughly stable against the US Dollar, at about $1.10 USD.
The 10 year US Treasury is paying 1.8%.
The 10 year German Government Bond is paying 0.3%, and Europe is being swarmed over by millions of Third World rent seekers.
So, yeah, better scarf up those Euros, Iran!
But if Iran starts to demand Euros the exchange rate $US and € may decrease. The Eurozone has far from recovered from its malaise and an increased exchange rate will kill off any export driven recovery in southern Europe. To me it looks like Iran is trying to kill its friends with “kindness”.