Monday, October 19, 2009

Iran to Drop Dollar From Forex Reserves

Tehran Times Economic Desk
Saturday, October 17, 2009

TEHRAN -- The Trade Promotion Organization of Iran (TPOI) announced this week that it plans to exclude the U.S. dollar from Iran’s foreign exchange reserves.

In line with this plan, Iran has informed Japan that it should use the yen instead of dollars to pay for the oil it buys from the Islamic Republic.

In addition, Iran has decided to open a bourse for oil and gas transactions in currencies other than the U.S. dollar, especially the euro.

Although the opening of the new bourse has been postponed several times, the plan shows the country’s determination to replace the dollar in its oil and gas transactions.

The TPOI has also announced that since October 2007 Iran has sold 85 percent of its oil exports in currencies other than the U.S. dollar and is determined to sell the remaining 15 percent in other currencies such as the UAE dirham.

During his first term, Iranian President Mahmoud Ahmadinejad ordered that the dollar should be replaced by the euro in the transactions of Iran’s currency reserve fund.

For further reading:
"Iran and Russia propose oil trade without U.S. dollar", Tehran Times, October 19, 2009
"Putin Prepared To Avoid Dollar In Chinese Commodity Transactions", Zero Hedge, October 16, 2009

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