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Friday, July 23, 2010

Yuan for Euro and Dollar

Reuters is reporting that Iranian oil and banking officials are in talks with their Chinese counterparts to replace dollar and euro with yuan for payment for its crude oil. It was clear if the switch would be only for the sale of oil to China, or it could extend to worldwide sale of Iranian crude.

Last week, Iran floated the idea of switching to UAE dirham. The UAE officials quickly rejected the idea. Iran is desperately seeking an international currency to replace euro and dollar for its oil transactions to blunt the impact ot he new US and EU financial sanctions against the country.

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3 comments:

  1. AnonymousJuly 23, 2010 at 11:58 AM

    That may not be a bad move to bypass the finiaceand banking sanctions.
    The Yuan is now undervalued, if you buy it you can make good profit.

    ReplyDelete
  2. AnonymousJuly 23, 2010 at 2:55 PM

    Actually China itself is about to dump the deadbeat dollar and move to a global basket of currencies. The US economy is in irreversible decline and more jobs are lost and manufacturing declines to almost negligible levels. The doomed US housing market is a good indicator of future economic uncertainty and shrinking middle-class.

    China may switch to currency basket for forex rate
    Central bank official suggests move away from dollar as benchmark.


    http://www.marketwatch.com/story/china-may-link-yuan-trade-to-currency-basket-2010-07-23

    ReplyDelete
  3. AnonymousJuly 27, 2010 at 9:28 PM

    Anonymous says, "The doomed US housing market".

    Welcome to 2008. Speaking to you from 2010, my house is worth more than it was when the housing market became "doomed". But why let facts get in the way of a good polemic rant?

    ReplyDelete