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Friday, July 13, 2007

Nobody Wants the US Dollar Anymore...

In the case of Iran, they can kill two birds with one stone: Enrage the US and make an economically sound decision.

" Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, to counter the risk that U.S. dollar transfers may be frozen by increased sanctions.

Iran wants yen-based transactions "for any/all of your forthcoming Iranian crude oil liftings,'' according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments "effective immediately,'' according to the letter, dated July 10 and obtained by Bloomberg News. "

As the dollar declines, commodity producers demand higher prices and central banks the world over have started diversifying their reserves.

" Iran is cutting its U.S. dollar reserves to less than 20 percent of total foreign currency holdings, and will buy more euros and yen as tensions with the U.S. increase, Central Bank Governor Ebrahim Sheibany said on March 27. "

This is not an isolated incident. Iran joins a growing list of countries in the process of shunning the dollar.

Source: Iran Asks Japan to Pay Yen for All Oil, Starting Immediately (http://www.bloomberg.com/apps/news?pid=20601087&sid=aLaColVYu5LA&refer=home)

2 comments:

Anonymous said...

Where ever I seem to go on the internet I come across a blog or a website regarding the situation of the economy. mortgage bonds seem to be on everybody's minds and so they should be! In a society where its nearly impossible to get a 100% mortgage, at least there is a little light at the end of the tunnel.

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