Monday, April 23, 2018

Iran officially dumps the dollar to move onto the Euro standard

As more and more nations work towards divesting their financial systems of dollars... either through gold repatriation, selling of treasury reserves, or via bi-lateral trade agreements, the less power Washington is able to hold over these countries.  And now it appears that Iran may be at the point where economic sanctions imposed against them are for all intents and purposes moot as they have officially dumped the dollar for the Euro standard.

As part of its years-long effort to reduce reliance on US currency amid a deepening standoff with Washington, Tehran has announced it will start reporting foreign currency amounts in euros rather than dollars. 
The governor of Iran’s central bank (CBI) Valiollah Seif said 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.” The new policy could reportedly encourage government bodies and firms linked to the state to increase their use of the euro at the expense of the American currency. 
France will start offering euro-denominated credits to Iranian buyers of its goods later this year to keep its trade out of the reach of US sanctions, said the head of state-owned French investment bank Bpifrance. – Russia Today
Iran is the third nation to either fully or in part remove itself from the long-standing Petrodollar system.  And as America's influence in the Middle East continues to wane, coupled with China's new Yuan-denominated oil futures market, it is only a matter of time before the Petrodollar standard completely ceases to exist, and the U.S. loses its ability to use dollar hegemony as a weapon in its foreign policies.

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