Tehran dumps dollar for euro

  • Share via facebook
  • Tweet this
  • Bookmark and Share

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.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Chris

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.

Posted by: Joe

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.

Posted by: H.D.Franke, Dr.

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.

Posted by: Dan

?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 :)

Posted by: Joseph

Right you are, robertsgt40. We are still a tiny minority but more people are waking up every day. I live in the state of Georgia and am supporting a states' rights candidate for governor named Ray McBerry that has a legislative agenda to retake the powers usurped by the federal government. Check the bills out at http://www.georgiafirst.org/governor/bills.shtml I am very friendly to the option of secession - anything to starve the leviathan of its power and return to freedom, peace, and prosperity!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Q&A with Noor Bank

Q&A with Noor Bank

Kazim Ali, head of corporate banking at Noor Bank, discusses...

Saudi bank's $6bn IPO ignites religious controversy

Saudi bank's $6bn IPO ignites religious controversy

Plans by National Commercial Bank have prompted some clerics...

Dubai flexes legal muscles as financial court system grows

Dubai flexes legal muscles as financial court system grows

Landmark ruling by the court system in Dubai's financial free...

Most Discussed