Iran Just Officially Ditched The Dollar

Tyler Durden's picture

Submitted by Alice Salles via TheAntiMedia.org,

Following President Donald Trump’s ban on travelers from seven predominantly Muslim countries, the Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports,” the local Financial Tribune reported.

Iran governor Valiollah Seif’s central bank announced the decision in a television interview on January 29. The change will take effect on March 21, and it will impact all official financial and foreign exchange reports.

Iran’s difficulties [in dealing] with the dollar,” Seif said, “were in place from the time of the primary sanctions and this trend is continuing,” but when it comes to other currencies, he added, “we face no limitations.”

In a piece published by Forbes, Dominic Dudley contends that this move is significant “in the light of the recent ‘Muslim ban” announced by Trump. Iran nationals were added to the order issued by the current U.S. administration, which prompted the Iranian government to vow to stop issuing visas to U.S. citizens.

Dudley notes that since 1975, “no Americans have been killed in terrorist attacks in the US by the citizens of the countries included in the ban,” while countries such as Saudi Arabia — “home of 15 of the 19 terrorists involved in the 9/11 attacks” — were left out of the list of prohibited countries.

Despite the country’s decision to halt the use of the U.S. dollar as its base currency for exchange with other nations, Iran’s top export is oil. In the global markets, oil is mainly purchased and sold in U.S. dollars. This fiscal year, Iran is expected to earn  $41 billion from oil sales, with countries like the United Arab Emirates (UAE) and China as their top clients. It’s still uncertain how the country will manage to switch currencies without relying on the American currency. The shift, Dudley notes, “will add a degree of currency risk and volatility and is likely to complicate matters for the authorities.”

This matters because predominantly Muslim countries left out of the “Muslim ban” include Saudi Arabia, one of the world’s top oil exporters.

In the 1970s, the Arab nation struck a deal with U.S. President Richard Nixon establishing an alliance that would maintain the dollar as the standard oil exchange currency in exchange for military support from America. The use of the dollar as a standard currency for oil exchange was accepted by Saudi Arabia and the remaining block of Organization of the Petroleum Exporting Countries (OPEC), which include Iran and 11 other Middle Eastern, African, and South American countries.

OPEC countries account for 42 percent of global oil production, holding 73 percent of the world’s oil reserves. Due to its influence, the use of the U.S. dollar as its standard currency helps to keep demand for the U.S. dollar high, giving the currency the support it requires to remainthe world’s reserve currency” and preventing the effects of inflation from hitting the U.S. consumer.

Iran’s decision to exit this deal might impact the U.S. economy and threaten the dollar, prompting the U.S. government to take stern measures to combat Iran’s actions. After all, Iran holds 13 percent of OPEC’s oil reserves.

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Giant Meteor's picture

Yep, the neocons be very happy now. Looks like another bombing campaign on deck.

flaminratzazz's picture

fvkmeblind, looks like ww3 is about to go full operational. Iran will not be a cake walk like other Mideastern nations.

They promised a total missile barrage on Israel if they're attacked..we can only hope they keep their word.

are all our carriers still in port?

Nexus789's picture

No it won't be as the Iranians will fight asymmetrically to cause as much damage and loss as possible - this is their military doctrine. As for invading Iran the losses would be horrendous and any attempt would require US conscription.  The seas off Iran will be missile rich.

Looney's picture

 

We might survive Iran’s ditching the Dollar, but if Lithuania or Zimbabwe do it too, we are finished!  ;-)

Looney

jcaz's picture

We knew they were ditching the Dollar when fucktard Obama delivered the pallets of cash to them in foreign currency-  the cuck also took their drink order and left their tip for them.....

balolalo's picture

war drums are beating.

trump is taking us over the cliff...

all he needs is an excuse, false flag, international incident....

war is on the horizon and this time america will be alone. 

 

Rabbi Chaim Cohen's picture

Iran is baiting Trump, thinking they can damage him by inviting conflict. As for ending their dependence on the dollar, that is easier said than done at this point. Just more islamo-blather from the petulant Persians.

Mustafa Kemal's picture

You can laugh  all you want, but if you are paying attention, you can actually watch the death of the petroodollar. Its funny if you arent american.

JRobby's picture

If you are American and support the change that is underway, you will welcome a return of freer markets with much less manipulation. 

HenryHall's picture

If Iran is attacked the first thing they will do is to eliminate all possibility of petrochemical exports from Gulf ports. Kuwait, Qatar (gas), more than half of Saudi production (not including Red Sea ports). Iran will still export oil at least via Russia and perhaps via Gulf of Oman ports.

Orc from Mordor's picture

If you aren't american and aren't an uneducated fucktard, you understand that "free market" is a myth invented to help USA and EU to rob other nations. There has never been any free markets, but history is full of wars for markets. But if you are american, than you should promote the free market myth, sure as fuck.

Jack's Raging Bile Duct's picture

I understand it will be hard, but I embrace it, welcome it. Dead petrodollar = dead Fed = dead leviathan. It's death throes shall be terrible, indeed.

UnschooledAustrianEconomist's picture

We are all in the same boat, bro.

brianshell's picture

This may be the torch that lights the fuse.

https://www.youtube.com/watch?v=R0cYbPCMdWc

Assuming Trump is as brilliant as required to pull this off.

Popcorn and silver.

The central planners's picture

Dont forget the Fiji islands.

3.7.77's picture

Exactly, get ready for hyper-inflation Iran.

07564111's picture

An attack on Iran would involve the killing of Russian Scientific personnel ( there are some 150 officially ) All hell will break loose because Russian citizens and the hardliners in the Military and the DUMA will not let Putin ignore the deaths.

Orc from Mordor's picture

And you should know that if anybody attacks Iran, Russia has the right to send troops there according to the agreement made in 19th century (it's still valid). 

flaminratzazz's picture

US conscription to fight Israel's wars will not fly. US could crackup right there.

Giant Meteor's picture

Talk about your protests and cities burnin. That would certainly do it ...

 

xetes's picture

I remember hearing the same nonsense about Iraq. The Elite Republican Guard, 7th largest military in the world, blah blah blah.

Giant Meteor's picture

Let me translate. So if you were for that massive waste and clusterfuck from hell, Iraq up the debt and Afghan in the can, you're sure to enjoy the war with bomb bomb Iran ! Why mince words. Let's just double down on the insanity. what the fuck ..

MFL5591's picture

What are these hardons gonna use, ...stones?

flaminratzazz's picture

Research the breakup of the soviet union and the sold off nuclear weapons from Ukraine..

Iran had a shit ton of cash back then.

07564111's picture

Kazakhstan was the source.

flaminratzazz's picture

there was a lot of them sold and disappeared.. how many are sitting in a container on US soil?

07564111's picture

we should ask Bibi the smuggler, I bet he knows ;) That might also explain why he's so shit scared of Iran ;) he knows what they got in the caves. ;)

flaminratzazz's picture

when the King said he was a big fan of Nuttyfvkinyahoo I knew we were fvked.

more wars for Israel

same as it ever was

Winston Churchill's picture

Iran is absolutely vital for the New Silk Road.

Any US  invasion would bring in China and most likely Russia as well.

You're a jingoistic fool.

Giant Meteor's picture

No, that would be WW4 ..

bundas kenyer receptek's picture
bundas kenyer receptek (not verified) MFL5591 Feb 2, 2017 9:17 AM

rubles .. they are gonna have plenty rubles, once the operation fredumbs gonna get some traction..

GraveDancer's picture

Book> The Road to World War III: Can the Dark forces of anti-Freedom trump Humanity?
Kindle> https://www.amazon.com/dp/B01MT31AXZ

Shemp 4 Victory's picture

Nobody is interested in your "get rich from spamming" pamphlet.

indygo55's picture

And any war with Iran will surely involve "other" big dogs as well. Weren't the Chinese sailing a few war ships into the Persian Gulf recently?

general ambivalent's picture

Say goodbye, America. In normal times your troops would have it hard. But with civil war on the horizon you may be seeing the end of your country. Just try not to take down the rest of us with your tail whip.

Kayman's picture

Execute Soros and the rent-a-mob stops.

JRobby's picture

Warrant going out for Soros shortly. Assume he is moving assets out of the US as we post this minute.

US GOVT likes to seize assets.

JRobby's picture

Guess they burned through the $1.7 bil Oblivio sent them?

Then fired a missle. Feel bad for the average and poor Iranian's. 

Forecast: possible wide spread flames

Life of Illusion's picture

 

OPEC RESTRUCTURING IN ACTION

Abitcoinbrain's picture

time to set up a rothschild central bank in Iran GENTS!

Xena fobe's picture

I don't think so.  Look at gold and USD this morning.  

Kirk2NCC1701's picture

Without looking first, lemme guess...

Up by a blistering $10-20?

It don't mean jack shite until it starts moving up in $50 steps, or hits  $1800.  More porpoising between control limits.

Years of being on ZH has made me a skeptic.

Kirk2NCC1701's picture

Oh wow.  Up by $7.10

Banksters must be quaking.

Absolute Truth's picture

https://m.youtube.com/watch?v=HP7L8bw5QF4

Ditching the petrodollar has led to the toppling of many nations.

Giant Meteor's picture

"Dudley notes that since 1975, “no Americans have been killed in terrorist attacks in the US by the citizens of the countries included in the ban,” while countries such as Saudi Arabia — “home of 15 of the 19 terrorists involved in the 9/11 attacks” — were left out of the list of prohibited countries."

"So I came back to see him a few weeks later, and by that time we were bombing in Afghanistan. I said, “Are we still going to war with Iraq?” And he said, “Oh, it’s worse than that.” He reached over on his desk. He picked up a piece of paper. And he said, “I just got this down from upstairs” -- meaning the Secretary of Defense’s office -- “today.” And he said, “This is a memo that describes how we’re going to take out seven countries in five years, starting with Iraq, and then Syria, Lebanon, Libya, Somalia, Sudan and, finishing off, Iran.” I said, “Is it classified?” He said, “Yes, sir.” I said, “Well, don’t show it to me.” And I saw him a year or so ago, and I said, “You remember that?” He said, “Sir, I didn’t show you that memo! I didn’t show it to you!”

Wahooo's picture

Take that drumpf! Ya ginger goofball!