We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 21 Sep 2009 09:31 PM

Font Size

- Aa +

Tehran dumps dollar for euro

Value of nation's Oil Stabilisation Fund (OSF) now set to be calculated in euros, according to local media.

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.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.
robertsgt40 11 years ago

Shouldn't be long now. Iraq had just dumped the dollar just before we "liberated" them. How convenient. Just keep in mind, not all of us here support the criminal cabal that has subverted our country.

Mogador el Loukhoum 11 years ago

The decision to dump the dollar for Euro was the beginning of the war against iraq,I hope the iranians know what they do

Joseph 11 years ago

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!

Dan 11 years ago

“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 :)

H.D.Franke, Dr. 11 years ago

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.

Joe 10 years ago

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.

Chris 10 years ago

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.