Never Forgive, Never Forget; Iran Refuses to Recycle Petrodollars

[Exarch]

Iran wants to dump dollar in crude trade – report

Published time: 6 Feb, 2016 13:35
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© Nikola Solic / Reuters



Iran wants post-sanctions’ oil contracts denominated in dollars and have buyers pay in euros, Reuters reported. Tehran is also keen to receive money owed to it since the pre-sanctions days in the European currency.
The country’s crude deliveries are to be restored soon, with companies such as the French giant Total, Spanish refiner Cepsa and Litasco and the trading arm of Russia's Lukoil already holding contracts. Reuters source at state-owned National Iranian Oil Co (NIOC) told the agency that Tehran wants to receive payment in euros.
In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the source said.
Tehran also wants to receive billions of dollars worth of assets frozen under the sanctions in euros, said another source. Iran has an estimated $100 billion in assets and around half of these would be unfrozen under the upcoming sanctions relief.

Iranian disdain for the American currency is nothing new. In 2007, it unsuccessfully campaigned at OPEC to switch from the dollar. The role it plays in the oil trade is one of the key reasons the dollar enjoys the status of the world’s leading reserve currency.
Iran is not alone in wanting to distance itself from the dollar. Russia has been working towards the same goal, trying to eliminate the US currency from domestic trade and signing deals with its key foreign economic partners to use national currencies in bilateral trade.
READ MORE: Putin wants to ax dollar from Russian trade
The sanctions against Iranian oil and its banking industry were imposed by the US and some of its allies, most importantly the EU, over allegations that Tehran was secretly trying to build a nuclear weapon. Iran denied the allegations and insisted its nuclear activities were for civilian purposes.
Last year, Iran and six leading world powers reached a deal, under which Iran made its nuclear program more transparent and accepted the imposition of safeguards. In exchange US and EU economic sanctions and nuclear-related sanctions imposed by the UN will be lifted.

Source: https://www.rt.com/business/331571-i...mp-dollar-oil/

looks like the US' days of bottomless deficit spending and oil backed military expenditure is coming to an end; but notice how the US aint going to try and invade iran for this, unlike with saddam.

[removeduser_487563287433]

DOOOOOOOOOOOOOOOM

Ok. And how do you think Iran will convince any other country to drop the dollar in crude oil transactions?

[Exarch]

simple;

you want iranian oil? pay in euros or yuan
and given the bull rush of european and perfidious albion to iranian shores, i'd say that those terms are more than acceptable to the anglo race traitors and their european slaves

[Condottiere 40K]

Does it matter?

The Americans would like a softer dollar to make their exports more attractive.

The Chinese just spent a hundred billion dollars to support the value of their currency.

The Germans certainly don't want the Euro to shoot up.

[Exarch]

Does it matter?

eh, US foreign policy since 1990 has been nothing but trying to maintain dollar hegemony; iraq was destroyed and raped because of that policy of maintaining dollar hegemony;

The Americans would like a softer dollar to make their exports more attractive.

until they realise the USG relies on deficit spending and low interest rates in order to maintain economic growth and social stability at home; good luck with that when the USG has to do what the UK and Greece are doing with austerity-it'll be the shortest administration of whichever US president decides to go down that road.

The Chinese just spent a hundred billion dollars to support the value of their currency.

which is exactly what their reserves are meant for; and besides, the creation of yuan recycling vehicles such as the AIIB means an alternative from investing in US debt.

why, have a listen to the top US salesman for US debt:


which is funny because despite agreeing to the deal, the iranians turns around and say, 'yeah, nup, we aint going to join your petrodollar system'

[removeduser_487563287433]

simple;

you want iranian oil? pay in euros or yuan
and given the bull rush of european and perfidious albion to iranian shores, i'd say that those terms are more than acceptable to the anglo race traitors and their european slaves

Let me put it this way to you. A few years ago one of the biggest banks in the world, Standard Chartered, was discovered to be money laundering to Iran allowing it to more easily weather UN sanctions. SCB was given a huge fine and ordered to shut down the SME banking operations in the UAE and Hong Kong, two gigantic financial markets. They complied without a fight, because the US threatened to withdraw their US banking licence if they did not.

The US's economic clout is mammoth. There's no Earthly way, and actually no good reason, for anybody to follow this.

[Exarch]

Let me put it this way to you. A few years ago one of the biggest banks in the world, Standard Chartered, was discovered to be money laundering to Iran allowing it to more easily weather UN sanctions. SCB was given a huge fine and ordered to shut down the SME banking operations in the UAE and Hong Kong, two gigantic financial markets. They complied without a fight, because the US threatened to withdraw their US banking licence if they did not.

The US's economic clout is mammoth. There's no Earthly way, and actually no good reason, for anybody to follow this.

let me put it to you this way:


comparing a typical craven Perfidious Albion bank with gargantuan entities like Russian and Chinese banks and companies is like diet pepsi with classic coke: no contest.

the fact remains that Iran is in a position to demand a change to petroeuros and petroyuans at the expense of petrodollars, whereas the US and its minions in Perfidious Albion can only gnash their teeth in disappointment

[removeduser_487563287433]

How, exactly, are the times changing? This discussion is only even being broached because Iran has fallen into the world's satisfaction and we have begun to lift sanctions.

[Exarch]

How, exactly, are the times changing? This discussion is only even being broached because Iran has fallen into the world's satisfaction and we have begun to lift sanctions.

why, this is almost too cute, you really do have a selective memory of history don't you?

yo ferrets, got news for you pal, this aint 2009 anymore, times be a-changin'

last year was the first year gulf oil states stopped recycling petrodollars and it dont take a harvard economist with a major in geopolitics to see where that leaves the United States, especially when you consider how much China has eclipsed the US in the middle east and how much Russia is committed to ending the dollar's hegemony.

You and your anglo pals done pissed off the wrong people, it's a good thing your british elites have earned their title of Perfidious Albion, otherwise they'd be a France's buttboy by now

[removeduser_487563287433]

Who stopped trading oil in dollars?

[Exarch]

Who stopped trading oil in dollars?

who?

[Roma_Victrix]

last year was the first year gulf oil states stopped recycling petrodollars and it dont take a harvard economist with a major in geopolitics to see where that leaves the United States, especially when you consider how much China has eclipsed the US in the middle east and how much Russia is committed to ending the dollar's hegemony.

What are you talking about? As far as I know, only Iran and Venezuela are interested in doing this. OPEC remains committed to using USD as its "petrocurrency". Aside from Iran (which is doing much better now that it has gotten those sanctions lifted), Venezuela's economy is currently in a meltdown. Their lack of a truly diversified economy (a category which Russia belongs to, by the way), largely reliant on oil exports, is currently weighing them down now that oil has become so damn cheap. Their entire economy has shrunk an astonishing 7% in the third quarter of last year, and for that matter Russia's economy shrank 3.7% last year (along with the Russian ruble hitting new lows thanks to cheap oil). Meanwhile, US economic growth isn't stellar, but it's at least steady at the moment, along with its currency.

China, on the other hand, seems as robust as ever, so you've got one thing right at least.

[Fanest]

Who stopped trading oil in dollars?

http://www.reuters.com/article/emerg...0ST2YZ20141103

Russia has been doing this now for almost 2 years, also they are switching to gold and other currencies, even if they accept dollars these are immediately converted usually to gold.

[Stario]

What with the aggressive currency swap agreements by Russia and China, & now Iran coming aboard to ditch the US dollar... I guess for those countries under US sanctions it makes perfect sense to trade in other currencies in order to negate such sanctions. The low US interest rates (to prop up the financial & housing markets), plus the drop in oil prices all contributing to finally halt the petrodollar machine.

The US currency accounted for just 33pc of all foreign exchange holdings in 2013, on IMF numbers, down from 55pc in 2001.

I guess the world is slowly moving away from the dollar.

[paleologos]

I don't see how Iran could be prevented from trading petrol for French or other EU manufactured goods, other than by means of war.

I do remember that the US were willing to tolerate Sadam Hussain as long he was willing to sell petrol for dollars but he essentially commited suicide when he decided to switch to euro.

The problem with dollars is that a government other than the US is not allowed to use them in the purchase of assets in the US.
This makes perfet sense to me, it is a matter of national security for any country not to allow foreign governments control over any significant parts of domestic industries.
And that I consider a real concern of national security, not an exaggerated one.

But especially for the US it is a multi-faceted problem:
A) They are a commercial deficit country, which means they are bleeding dollars,
B) They spend outrageous amounts of money abroad, trying to sustain hundreds of military bases around the world, not to mention the wars, which means they are bleeding even more dollars.
In effect they are flooding the world with paper and if they allowed foreign governments to buy industrial assets in the US, they would soon find themselves without a country.

Why does the value of the US dollar not plummit?
Three reasons:
A) The US dollar has been the worlds leading reserve currency since the end of WWII.
B) The petro dollar system ensures that the demand for USD remains high.
C) Foreign governments and financial entities are allowed to buy US sovereign debt, which results in the dollars being recycled, the loop closes in Wall Street.
(Though this means that whatever the USG are doing they are doing it on credit)

Well, it seems that there are many countries around the world who think that American fiat money -that is credit- is no longer credit worthy.

Iran is just a piece in the puzzle of a larger and more complex backlash.
The Russians not accepting to hoard USDs or USG bonds are another.
And we should not dismiss the creation of the Asian Infrastructure Investment Bank as unrelated to issue at hand.

Here is an interesting interview by Michael Hudson:
World Tired of Paying Bill for US Military - December 26, 2010

Well, as you know, in 1971, President Nixon had to take the dollar off gold. So it was the Vietnam War that forced the dollar off gold and ended its role as a monetary standard as good as gold. I've just got back from a tour of Asia and Brazil, and these countries are saying, because the dollar is being used so much to fund the military deficit, when we run a balance of payments surplus with America, we get dollars, we export, the dollars are turned over to the central bank. There's nothing central banks can do with dollars but buy US Treasury bonds. And we've been financing, with our Treasury bond purchases, the military spending that's responsible for the US federal deficit, for our encirclement. So by keeping the dollar, we're keeping ourselves encircled. We don't want any more dollars. That's what I'm told--Brazil, China, even Australia.

[Basil II the B.S]

As others have said, Russia has been doing this since the coup in Ukraine and most countries are more than happy to follow. Most of Asia and China especially can't wait. Even French banks if I remember correctly.
The Petroldollar is cancer anyway and the world will be better without it. The US themselves will be forced to fix their deficits without exporting toilet paper.

[removeduser_487563287433]

http://www.reuters.com/article/emerg...0ST2YZ20141103

Russia has been doing this now for almost 2 years, also they are switching to gold and other currencies, even if they accept dollars these are immediately converted usually to gold.

Yeah, Russia is also under massive US and EU sanctions...

[Roma_Victrix]

Expanding earlier on my point about Venezuela and its troubled economy, this article explains why Venezuela is importing US oil, despite having the largest oil reserve in the world:

Venezuela has more oil than any other country on the planet.

But it just bought a bunch of American crude.

A ship carrying half a million barrels of oil that was pumped in the U.S. docked at a terminal owned by Venezuela last week, according to oil data research firm ClipperData. The shipment was sent to a facility located on the Dutch island of Curacao in the Caribbean.

The fact that Venezuela is importing American oil is raising eyebrows because Venezuela has 298 billion barrels of proven oil reserves, according to the Energy Information Administration. That's more than Saudi Arabia, Russia or Iran and eight times the reserves of the United States.

But the oil extracted in Venezuela is very heavy and hard to refine and then sell to other countries. Venezuela needs to first mix its heavy oil with lighter types of crude to balance out the quality, according to Nilofar Saidi, an oil market analyst at ClipperData.

Saidi said Venezuela had already been importing lighter types of crude oil from Russia, Angola and Nigeria.

"It's just cheaper to bring a tanker of light crude from the U.S. Gulf than to ship it from West Africa or North Africa," says Nilofar Saidi, an oil market analyst at ClipperData.

The U.S. officially lifted its 40-year ban on exporting oil to other countries in December. Despite political tension between the two countries, Venezuela's state-run oil company, PDVSA, was quick to get in line for American oil.

Friction between the U.S. and Venezuela runs deep. Last March the Obama administration slapped sanctions on several high-ranking members of President Nicolas Maduro's government. U.S. authorities also arrested and indicted two of Maduro's family members for drug trafficking late last year.

The political tension may be weighing on economic ties. Venezuela's exports to the U.S. peaked at $48 billion in 2008, according to the IMF. That number has declined dramatically since then, sinking to just $26 million in 2014.

Venezuela is getting crushed by low oil prices. Its economy greatly depends on oil exports to drive growth. As oil prices have plunged in the past two years, so has Venezuela's economy, which is now in a severe recession. It's arguably the worst economy in the world.

[Condottiere 40K]

Last I checked Russians banks were bankrupt, and had to be bailed out by the Kremlin. Lack of access to the global financial markets does that.

The Chinese ones are deeply committed to their domestic market, and no one is clear by how much.

[Fanest]

Last I checked Russians banks were bankrupt, and had to be bailed out by the Kremlin.

Same happened to countless European banks, however its a bit different now in Russian scenario because these banks that are getting bailed have mostly foreign-currency debt.