Tehran dumps dollar for euro

MAHMOUD AHMADINEJAD: Iranian president signs-off on move to demote US dollar. (Getty Images)

Iran's President Mahmoud Ahmadinejad has ordered the replacement of the US dollar by the euro in calculating the value of the country's Oil Stabilisation Fund (OSF).

The edict, issued on Sept 12, follows a recommendation by the trustees of the country's foreign reserves, Iran's English-language daily The Tehran Times said on Monday, citing Iran's semi-official Mehr News Agency.

The move was taken because the government wishes to protect itself from the fragility of the US economy and the weak dollar.

The OSF, which forms part of Iran’s foreign exchange reserves, is a contingency fund set aside to cushion the economy against fluctuating international oil prices.

It is also used to help both the public and private sectors with their hard currency needs by extending loans.

Press TV meanwhile reported that following the switch the interest rate for facilities provided from the foreign exchange reserves is to be cut to 5 percent from 12 percent.

Since its introduction in 1999 by the EU the euro has gained popularity internationally and there are now more euros in circulation than the dollar.

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READERS' COMMENTS

Euro vs. dollar
Posted by Chris, San Francisco, United States on Wednesday 30 September 2009 at 10:10 UAE time


I knew that Saddam's goose was cooked the minute that he announced to the world that he no longer wanted dollars for Iraqi oil. Let's see where we are 12 months from now regarding this situation. Unfortunately, war is the most likely outcome.

Now they've done it
Posted by Joe, Chicago, USA on Monday 28 September 2009 at 23:52 UAE time


Dumping the dollar for the euro virtually guarantees that Iran will now be attacked by Israel or the U.S. or both, acting on behalf of the banking cartel whose bidding they carry out. That's what Saddam Hussein did and look what happened. You can do almost anything you want, but if you threaten the dollar's status as the global reserve currency you're toast.

Bad Idea indeed
Posted by H.D.Franke, Dr., Germany on Sunday 27 September 2009 at 00:05 UAE time


Dumping USD for Euro is the same as expelling the devil with Lucifer.
Euro is as weak as the USD. Only covertly ECB has provided more "liquidity" than FED, but that won't prevent collapse of major European banks. Anyway Ahmadinejad did not dump USD for Russian rubles..that had been a very bad idea.

Re. robertsgt40
Posted by Dan, Stockholm, Sweden on Saturday 26 September 2009 at 13:19 UAE time

“Just keep in mind, not all of us here support the cabal that has subverted our country”

The same goes for 90% of us and our beloved Iran :)

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