Iran Officially Switches From Dollar To Euro

Just two weeks after "panic" hit the streets of Tehran as the Iranian government attempted to 'fix' the freefall of the Rial against the USDollar...

Middle East Monitor reports that Iran’s feud with the US is set to get worse after Tehran announced this week that it will start reporting foreign currency amounts in euros rather than US dollars, as part of the country’s effort to reduce its reliance on the American currency due to political tension with Washington.

Central bank governor Valiollah Seif said last week that Supreme Leader Ayatollah Ali Khamenei had welcomed his suggestion of replacing the dollar with the euro in foreign trade, as the “dollar has no place in our transactions today”.

Iran does hardly any trade with the US due to decades of economic sanctions. It’s most important trading partner is the UAE, which accounts for around 24 per cent of all Iranian imports and exports. China is not far behind with 22 per cent, followed by Turkey, India and the EU, all of which account for around six per cent of Iran’s trade.

Iran’s leaders have been threatening for some time to ditch the dollar for a different currency. The shift towards euro took on added urgency after the appointment of Donald Trump and his decision to include Iran on a list of mainly Muslim majority countries banned from entering the US.

Trump has also threatened to exit a 2015 nuclear deal Iran made with world powers. The next major test for the deal is 12 May when Trump will be required to re-endorse the deal, which he has derided as “the worst deal ever”.

The move is seen by Iranian officials as a logical and necessary step. The threat of further US sanctions has destabilised Iran’s foreign exchange market in recent months. Bank transactions involving the dollar are already difficult for Iran; sanctions have made US banks unwilling to do business with Tehran; foreign firms can be exposed to sanctions if they do Iranian deals in dollars, even if the operations involve non-US branches.

According to Reuters, Ali Khamenei, who has welcomed the decision to replace the dollar, blamed foreign enemies for the “recent issues in the currency market” and asked Iran’s intelligence services to defuse the plots against the Islamic Republic.

Comments

Money_for_Nothing TRM Mon, 04/23/2018 - 07:14 Permalink

Trump isn't Bush and they are way too late. If the Fed cuts off the swap lines then the next crisis kills a lot of large European banks. Everyone is expecting the crisis at any time. The Fed mad some changes that may make a difference. The difference is that the Fed won't bail out every bank in the world again. IF the changes make a difference this time.

In reply to by TRM

zvzzt pliny the longer Mon, 04/23/2018 - 04:00 Permalink

There isn't really an alternative (yet) for major trading except the EUR. Thing with the EUR is, it basically is the Deutsche Mark with weakness embedded via the southern countries. Officially the ECB cannot print like the FED can, which makes is a bit less horrible, I guess. Then again, the 2% deficit rule and asset purchasing was prohibited as well... 

What to do.... what to do... 

In reply to by pliny the longer

Money_for_Nothing zvzzt Mon, 04/23/2018 - 07:31 Permalink

If the EU is successful at regaining its honor then the US will pull out its military from Europe. Then the EU has to militarize or be overrun or Finlandized by Russia (ie lose its honor again). Socialist welfare state can not afford both guns and welfare. See UK.

Trump is telling the EU to decide whose bitch it wants to be or to grow a penis.

In reply to by zvzzt

zvzzt Money_for_Nothing Mon, 04/23/2018 - 10:28 Permalink

Last invasion of Russia into Europe was in 1799 (as aggressor, not as counter-attacker). There is no need nor motivation for Russia to invade Europe (probably that's why they haven't in the past). A very decent symbiosis can exist between most of Europe and Russia (Turkey, Scandinavia are more problematic from strategic and resource-strategic viewpoint - probably why they did have several wars with Russia in the past...). 

The moment the US pulls out of Europe militarily (not the best option for US (not at this point anyway)), Europe will ease back to the natural state of the past centuries: focus on trade with Russia & Asia. Not an option for the US, hence the troops here and the existence of NATO in current times. 

Since Europe is a non-sinkable aircraft carrier for the US as well as incapable of threatening anybody seriously out side of Europe militarily (we've more or less figured out the potential of destruction by now), it is in the best interest of the US to maintain troops here; we indeed remain US's bitch as long as troops remain. 

What I truly do not understand is UK's stance versus Russia at the moment. Cut loose from EU's strangle hold could have made them such an interesting (independent)  trading partner for EU, Russia and the East. Instead they turn sour on (century old ally and Royal bloodline) Russia and choose the side of the problematic empire of the US. 

In reply to by Money_for_Nothing

Mustafa Kemal radio man Sun, 04/22/2018 - 23:41 Permalink

"So how did the dollar loose relavance? Slowly at first, then all of a sudden."

Count them. Venezuela, China, Russia, Iran, Turkey wants its gold back, Russia to issue Silver Ruble!

Times they are a changin and the 

petrodollar aint what it used to be

Iran is getting pretty feisty before the May 12 nuclear deal signoff. Playing hardball. 

In reply to by radio man

Money_for_Nothing Mustafa Kemal Mon, 04/23/2018 - 07:22 Permalink

If Russia mints a Silver Ruble coin in quantity then it could replace the dollar. Trillion dollars worth of silver coins? Paper or bank account Silver Ruble? Good as Nixon's Gold Dollar. Obama wanted Iran doing world trade again. Trump doesn't care or doesn't want them. No one believes Iran quit working on nukes. Seems like they just can't get them operational. Might be because their facilities keep blowing up. Doubtful Russia is helping them very much. Why should Russia. Iran plays the same spot on the world stage as Russia. Iran is Russia's Understudy.

In reply to by Mustafa Kemal

Fiscal Smegma J S Bach Sun, 04/22/2018 - 22:52 Permalink

If you actually understood how monetary systems function you would not want to leave a fiat system.

Otherwise, folks like Zuckerberg and company would be the owner of the land you sharecrop.

Fixt monetary systems have no flexibility to expand credit outside of the growth of what backs it. Gold has to be dug up, so you will wait in line to get a mtg when enough gold is dug up, maybe your number will be called...

That's a silly archaic system.

 

In reply to by J S Bach

Jack's Raging … Fiscal Smegma Sun, 04/22/2018 - 23:30 Permalink

You have it backwards. Zuckerberg wouldn't exist in a sound money environment, nor would his NSA/CIA enablers. Even if he did, he wouldn't be worth more than a couple of million. It's the fiat monetary system that keeps those with early access with all the access to the material wealth, while the rest of the pyramid toils to keep up in a race they cannot possibly catch-up.

In reply to by Fiscal Smegma

Last of the Mi… Jack's Raging … Mon, 04/23/2018 - 07:02 Permalink

Apply the same critical thinking to Amazon and not only do you have the largest online retailer that never should have been, but the entire face of the retail industry in America has changed drastically and with finality. All because of the pumped-up valuations of the market through the Fed intervention.

What the Fed has done to the market (both stock and retail) simply cannot be undone. It will take decades for the monetary devaluation of the individual to be undone and the face of the US has changed forever. For the circle of friends.

In reply to by Jack's Raging …

Jack's Raging … Last of the Mi… Tue, 04/24/2018 - 12:11 Permalink

It's definitely going to take awhile. If we get Great Depression style collapse tomorrow, it would still take a decade. One thing to remember about these chosen behemoths like Facebook or Amazon, is that they either break-even or profit negative when you dispel the bogus evaluations and accounting gimmicks. Giants that they are with State backing, or made of glass without it. The same applies to Tesla and most other major US giants.

In reply to by Last of the Mi…

Dane1972 Fiscal Smegma Mon, 04/23/2018 - 01:33 Permalink

An archaic system? Precious metals such as gold and silver have been a currency for thousands of years. Why?...because they work!  Additionally, they do have flexibility, just look at the way metals are manipulated today. 1 ounce of gold backs hundreds of IOU "paper notes" on the stock market such as symbols GLD and SLV. Metals ideally should prevent gross amounts of debt ie $22 trillion and growing daily in the US. Fiat currencies throughout history have failed time and time again, from Ancient Rome to Venezuela. Fiat always implodes.  Read your history and articles on Zerohedge to back this fact. China and Russia are stockpiling gold for a reason, they know our currency is doomed (and soon) and they know precious metals backing their currency will hold value.  Most other countries who have stored their gold reserves in the US are having these reserves returned to their home countries for a reason. Without something backing a currency, it simply is not truly worth the paper it is printed upon. Our currency has lost approximately 95% of its value over the last 90 years, yet metals have held their value.  I take it you would rather hold a US $20 bill from 1920 vs. a $20 ounce of gold (say a US double eagle $20 gold coin) from 1920. I'd take the $20 ounce of gold, you can have the $20 fiat US dollar.  Yes gold has to be dug up, not simply printed, this is why it works ("precious" metal).  There is plenty of gold to make a currency as its intrinsic value would simply rise with demand.  The demand for our fiat US dollar is shrinking at an alarming rate and soon our market will be flooded with worthless paper money backed by nothing. Loans can be made against metals, you can borrow money against gold and silver today by margin in the the same symbols of GLD and SLV with currency trading platforms.  You hold onto your fiat currency while people in the know hold onto gold and silver. Perhaps I'll see you in 10 years attempting to by something post inflation with your US $20 bill in hand and my $20 gold coins in hand next to you.

In reply to by Fiscal Smegma

HRClinton J S Bach Mon, 04/23/2018 - 13:35 Permalink

JS Bach: "I wish we here in America could take ourselves off the fiat dollar as well."

You can. Just go aggressively (and for now legally) full bore into the PARALLEL ECONOMY (PE).

PE = Cash Currencies, PM, Cryptos, Barter, DIY, Gems,  Collectibles. 

Then stay in the PE ecosystem, and recruit more with the zeal of a (((Global-Lust))).

Another way you can Prep, is to go the the US Treasury site, and open a direct T account, that's available 24/7/365. You take out the (((middlemen))), and bank with the Treasury itself. When the Reset comes and bankster fiat burns, your US Treasury account will still be there. It's what I'd do, if I were a US Patriot.

For details, see... ​https://www.treasurydirect.gov/indiv/research/indepth/tbills/res_tbill_buy.htm

"By Deception, we Goy will do war" against the (((Global-Lusts))). And with epic retribution, when the time comes.

In reply to by J S Bach

mailll Truther Sun, 04/22/2018 - 23:30 Permalink

Just a matter of time.  Iran is a threat to Israel so the Neo-Zionists have to take them out.  Moving away from the US dollar just adds fuel to the fire.  

General Wesley Clark, former NATO commander: 

 "This is a memo that describes how we're going to take out seven countries in five years, starting with Iraq, and then SyriaLebanonLibyaSomalia,Sudan and, finishing off, Iran."

In reply to by Truther