Iran virtually free of U.S. dollar in oil revenues

[LadyMod at scam.com]

Iran virtually free of U.S. dollar in oil revenues (http://www.guardian.co.uk/feedarticle?id=7088101)
Reuters Monday November 19 2007

LONDON, Nov 19 (Reuters) - Iran, at odds with the West over its nuclear programme, has effectively cut all ties with the dollar when it comes to oil revenues, a top Iranian oil official said on Monday. For nearly two years, OPEC's second biggest producer has been reducing its exposure to the dollar, saying the weak U.S. currency is eroding its purchasing power. Tehran is now fetching roughly $87 a barrel on daily crude sales of 2.4 million.

"This is an economic decision and we've been proven right. Over time the dollar has got weaker and weaker," Hojjatollah Ghanimifard, international affairs director of the state owned National Iranian Oil Company (NIOC) told Reuters. "On a macro-economic level, nearly all of Iran's crude oil sales are now being paid for in non U.S. currencies."

Ghanimifard said less than 20 percent of Iran's oil export earnings are in yen and the rest in euros.

He explained that NIOC is receiving more than 80 percent of its payment for crude in currencies other than the dollar.

The remainder is settled in euros through a long-standing clearing arrangement between Iran's Central Bank and various Asian governments.
Iran presented its economic case against the dollar at an OPEC heads-of-state summit in Riyadh at the weekend.

The Islamic Republic and anti-U.S. ally Venezuela made clear before and after the summit they would press for action, which could include pricing oil in a basket of currencies.

"If there is a decision to do that, it would be a very easy procedure between the buyer's and seller's banks," said Ghanimifard.

About 60 percent of Iran's overall crude sales are destined for Asia, with the remainder moving mostly into Europe and Africa. The United States has banned imports of Iranian crude since 1995. (Reporting by Peg Mackey)

[LadyMod at scam.com]

Venezuela's Chavez Visits Iran (http://ap.google.com/article/ALeqM5hC-0hm5-oTK28ioXdjGwG3RBwcLwD8T0O3PO1)
By NASSER KARIMI – 4 hours ago

TEHRAN, Iran (AP) — Venezuelan President Hugo Chavez made his fourth trip to Iran in two years on Monday, state media reported, as the two countries sought to strengthen ties while their leaders exhort the international community to resist U.S. policies.

Chavez, who arrived in Tehran from Saudi Arabia where he attended the weekend's OPEC summit, is expected to discuss various political and economic issues with his Iranian counterpart, Mahmoud Ahmadinejad, the official Islamic Republic News Agency reported.

Chavez was accompanied by a string of top Venezuelan officials for the hours-long visit — among them the foreign, industry, oil and communication ministers, as well as the mayor of Caracas, the country's capital.

Ahmadinejad also attended the Organization of Petroleum Exporting Countries summit in Riyadh, Saudi Arabia.

During the gathering, the two firebrand leaders echoed one another, blaming President Bush's policies for the decline of the dollar and its negative effect on other countries, and challenging Saudi Arabia's reluctance to mention weak dollar concerns in the summit's final declaration.

Ahmadinejad claimed OPEC's member countries want to convert their cash reserves into a currency other than the depreciating U.S. dollar, which he called a "worthless piece of paper."

Chavez said the dollar was in free-fall and that its "empire" must end, and proposed trading oil in a basket of currencies excluding the dollar.

But the two were unable to generate support from enough in the 13-member cartel — many of whom, including Saudi Arabia, are staunch U.S. allies.

Tehran is in a bitter standoff with Washington over its nuclear program, which the U.S. fears is a cover for a weapons program but which Iran insists is peaceful.

Meanwhile, the U.S. accuses Chavez of being a threat to stability in Latin America, while the Venezuelan leader is constantly criticizing U.S. "imperialism" under Bush.

Iran's foreign ministry spokesman, Mohammad Ali Hosseini, said Sunday the two leaders would sign economic deals and memorandums of understanding in economic fields, and an agreement on small and medium enterprises.

In July, the two countries broke ground to start building a jointly owned petrochemical complex in Iran, with 51 percent of it in Iranian ownership and 49 percent to be owned by Venezuela. The two also began construction of a second petrochemical complex in Venezuela, at a total combined cost of $1.4 billion. No details on the ventures have been disclosed.

The two nations believe their petrochemical partnership will help Iran access markets in Latin America and Venezuela would get access to energy markets in Asia, especially India.

During Chavez's previous visit in July, the two countries signed some 20 economic and trade agreements. Since 2001, they have signed over 180 trade agreements, worth more than $20 billion in potential investment, according to IRNA.

[UserName]

Good post LM. I've been keenly interested in seeing what happened at this OPEC meeting in regards to what currency Venezuela would trade oil in. It appears that Iran and Venezuela have started the ball rolling, although Saudi Arabia did not concur.
America needs to put pressure on China to boost the value of the Yuan before we get hit from two sides and the US dollar becomes virtually worthless.

[Moby]

America needs to put pressure on China to boost the value of the Yuan before we get hit from two sides and the US dollar becomes virtually worthless.
It's too late for that. Well, it will stop total disaster but we've allowed it to go on too long and it's been the leading cause in our trade deficit. Of course it's good for companies that manufacture in China just terrible for small companies that are trying to employee Americans.