0 votes

Iran Oil Bourse may use Russian ruble (collapse of the greenback)


Interesting read from today... The dollar is heading down, fast...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

as fast?

So you hold dollars because it's the reserve currency.

And you hold dollars because it's used to buy oil.

So you're China and you sit on 1.3 trillion in US dollars... you're telling me that you aren't going to try and get something for your devaluing dollars?

American companies are valuable, especially since they are denominated in units of US government debt.

Is there really going to be a dislocation here? If Saudi Arabia goes along with the Iran Oil Bourse, then yeah... sure. But until that happens, we are seeing a slow drain.

Bourse Long Thread

We are all following this VERY closely.....


Russian, French Backing of Iran

It looks like the Iranian rial will be the initial currency used on the exchange, although it's very important to note that Iran has gone out of its way to emphasize that the Russian rouble may be the next currency for trade.

It also seems like Iran has played with the public dates for the launch of this exchange, perhaps to throw off the United States. This exchange was to open Feb 27, but is opening Feb 17. The world is watching. Here is a summary article from India this morning:

There are some who have argued that Russia's backing of Iran is one of the few things that has staved off further US activity against Iran. It would be in Iran's interest for Russia, China, and perhaps some other gulf states to publicly back this exchange. I haven't seen that happen yet (although we may have just not heard about it). Saudia Arabia is trying to lure Russia away from further military and technology sales to Iran with a $50B contract in the news this week:

While France may have previously backed Iran during prior Iran:US tensions, Sarkozy represents a real shift in France's foreign policy alignment towards the United States. France is also building a new base in the region, and Iran has strongly objected to the prospect and handling:

There are many reasons why the US dollar is at risk for losing its status as the world's reserve currency. It's clear that this new Oil Bourse is potentially a major threat if it becomes successful since nations will need to hold fewer dollars to purchase energy on world markets, reducing their US dollar reserves. I imagine that the US is actively using influence to discourage nations from trading on this bourse. Let's also remember that the US allowed the Iraq Bourse to operate for only six months in Euros before the US invaded and shut it down.



It would see the end of the dollar peg

I see Venezuela turned off the taps, too.