Iranian Presidential Advisor: Lowering Dollar Reserves Important
The Iranian government's decision to convert its dollar-denominated foreign reserves to non-dollar reserves is critical and needs to be properly publicized by the country's officials, Mujtaba Samereh-Hashemi, Iran's Senior Presidential Advisor, told reporters at the end of a cabinet meeting.
The conversion prevented a decrease in the value of Iran's foreign reserves, considering the more than 20% depreciation of the dollar against major currencies, Samereh-Hashemi added.
Since last year, Iran's oil transactions have been conducted in euro and yen, as the dollar has been completely replaced by these two major currencies.
PRESSTV, Iran, June 18, 2008
Ahmadinejad Says Glut In Oil Market, Calls For Setting Up Oil Bourse, OPEC Bank
Iranian President Mahmoud Ahmadinejad said today that there was a glut in the oil market, and called for an oil bourse and an OPEC bank to be set up in order to optimize the situation in energy market.
Ahmadinejad was speaking at the 29th meeting of the Council of Ministers of OPEC Fund for International Development, currently underway in Isfahan, in which high-ranking officials from 12 OPEC member countries are participating.
Ahmadinejad added, "I repeat my suggestion made six months ago at the OPEC summit in Riyadh, to create a basket of credible currencies which would be the basis for oil transactions.... A combination of the world's valid currencies should become a basis for oil transactions or OPEC member countries should determine a new currency for oil transactions."
He noted that the final way to solve existing problems was establish a justice-based political and economic system.
Source: IRNA, Iran, June 17, 2008
"It is a great relevant suggestion from Ahmadinejad isn't it? A JUSTICE-BASED POLITICAL & ECONOMIC SYSTEM. Until today we heard no respond from OPEC especially Saudi Arabia. Just imagine if oil transaction or international trading are no longer or lesser conducted in USD. It is main reason Iraq was invaded. And now Iran face a same problem as Iraq. The good thing is, it is not easy for US to invade Iran as what they did in Iraq. The main factor why too many country still using USD for international trade is simple; US military threat."-redzuank
"Since currently worldwide oil sales are denominated in U.S. dollars, changes in the value of the dollar against other world currencies affect OPEC's decisions on how much oil to produce. For example, when the dollar falls relative to the other currencies, OPEC-member states receive smaller revenues in other currencies for their oil, causing substantial cuts in their purchasing power. After the introduction of the euro, pre-invasion Iraq decided it wanted to be paid for its oil in euros instead of US dollars causing OPEC to consider changing its oil exchange currency to euros, although after Iraq's invasion, the interim government reversed this policy, and the subsequent Iraq governments stuck to the US dollar. Member states Iran and Venezuela have undergone similar shifts from the dollar to the Euro."