Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says

[Sugarcane]

That is a joke, right? What does PK central bank hold now?

I wish $ collapse, our debts in $ are far more than reserve, It doesn't matter for us.

 

[FairAndUnbiased]

Currency, "a medium which enables trade"

That is exactly what a currency should do. I do not understand economy? I hold a Dr. level degree in such matter.

The problem is that your Rial won't enable trade since almost no other trading partners want that. They want $, europe $, JP Y, canadian $, australian $ or even Chinese RMB.

However, where on earth can those Rial be used anywhere else for trade/exchange???

BTW, why don't you tell me currently which "smart" country in the world uses your Rial as reserve besides iran???

---------- Post added at 11:50 AM ---------- Previous post was at 11:49 AM ----------

We get paid by $, or Euros.

The burden of what currency to use does not lie with the seller, but the buyer. Russia sells its oil only in rubles. To buy any oil from Russia, you must first buy rubles, then buy their oil with those rubles. Originally, they accepted USD and Euro for rubles, but now, they've expanded to RMB, and perhals rial. To the Russians, there's little distinction as they can print the rubles which are ultimately backed by Russia's oil.

China's trade agreement with Japan means that whereas before China and Japan both had to convert their holdings to USD first, they now just trade each other's currencies; China accumulates yen and Japan accumulates RMB. By bypassing the USD, this reduces demand on the USD and should lead to its devaluation; indeed, this is what happens.

USD has been devaluing relative to both Yen and Yuan.

 

[ephone]

Without $, pk government won't survive for one week. You won't buy anything from international market.

I wish $ collapse, our debts in $ are far more than reserve, It doesn't matter for us.

---------- Post added at 09:29 PM ---------- Previous post was at 09:26 PM ----------

Why don't you list those trades in rubles, RMB, Yen, euros as well as US $?

What you have just said seems to indicate they have been equally weighted.

In reality, majority of the trades are in $ and euros.

Those RMB, YEN as well as rubles trade amount to just a small faction at most.

The burden of what currency to use does not lie with the seller, but the buyer. Russia sells its oil only in rubles. To buy any oil from Russia, you must first buy rubles, then buy their oil with those rubles. Originally, they accepted USD and Euro for rubles, but now, they've expanded to RMB, and perhals rial. To the Russians, there's little distinction as they can print the rubles which are ultimately backed by Russia's oil.

China's trade agreement with Japan means that whereas before China and Japan both had to convert their holdings to USD first, they now just trade each other's currencies; China accumulates yen and Japan accumulates RMB. By bypassing the USD, this reduces demand on the USD and should lead to its devaluation; indeed, this is what happens.

USD has been devaluing relative to both Yen and Yuan.

 

[FairAndUnbiased]

Since the deal had just been signed, I doubt that there would be a significant change THIS YEAR in RMB-Yen trades.

But within a few years, I predict that the RMB-Yen volume would increase quite greatly.

The reduced demand for USD in Asian economies is evidenced by its depreciation towards RMB and Yen.

 

[Pak_Sher]

Pakistan also needs to move away from the Euro and the US $ due to financial crisis. Pakistan rupees should be traded more to make it stronger.

 

[PERSIAN GOD KING]

The usa is stupid, now alot of countries will stop using the dollar since they can see how usa can use it as a weapon against them, good move by Iran.

 

[somebozo]

If they want to save money, well, no. They prefer gold and US dollar. but the guy claimed that US dollar was more popular than Iranian Rial in local market which is wrong. Also because the price of dollar is changing significantly almost every week not everyone wants to take the risk to buy or sell dollars now.

US dollar is extremely popular in Tehran...everything..from street hawkers for screw drivers to the street hooker demands payments in dollars! Thats a big FAIL of the ayatollah regime!

53 resource rich muslim countries and we dont even have a currency of our own..imagine if we did..we would be the economic power block of the world.!

 

[ephone]

China may show some resistance. However, U.S. won't tolerate japanese to do that if it increases the yen trade too much.

RMB as a reserve currency or major trade currency, it still has a long long way to go.

Since the deal had just been signed, I doubt that there would be a significant change THIS YEAR in RMB-Yen trades.

But within a few years, I predict that the RMB-Yen volume would increase quite greatly.

The reduced demand for USD in Asian economies is evidenced by its depreciation towards RMB and Yen.

---------- Post added at 09:49 AM ---------- Previous post was at 09:48 AM ----------

That is simply a big lie.

U.S. $ is still the major reserve and trade currency. Euros used to challenge $ in certain degree. However, nowadays, euros seem to have its handful now.

The usa is stupid, now alot of countries will stop using the dollar since they can see how usa can use it as a weapon against them, good move by Iran.

 

[ephone]

You cannot even solve your problems between your two branches for thousand years. Let alone other matters.

When there is no Sunnis and Shiites division anymore, muslim world might have a chance.

US dollar is extremely popular in Tehran...everything..from street hawkers for screw drivers to the street hooker demands payments in dollars! Thats a big FAIL of the ayatollah regime!

53 resource rich muslim countries and we dont even have a currency of our own..imagine if we did..we would be the economic power block of the world.!

 

[Banglar Lathial]

US dollar is extremely popular in Tehran...everything..from street hawkers for screw drivers to the street hooker demands payments in dollars! Thats a big FAIL of the ayatollah regime!

53 resource rich muslim countries and we dont even have a currency of our own..imagine if we did..we would be the economic power block of the world.!

Muslim world could have been the world leader in so many sectors if there were any sort of political unity. All these decisions are made by politicians. In the so called Muslim world, most leaders are un Islamic to the core. Not only the leaders but the system in place that governs so called Muslim countries are un Islamic.

 

[ephone]

You want your islam countries replaced with one Caliph, and those cut-hands, stone-to-death type of mid-eval laws???

Muslim world could have been the world leader in so many sectors if there were any sort of political unity. All these decisions are made by politicians. In the so called Muslim world, most leaders are un Islamic to the core. Not only the leaders but the system in place that governs so called Muslim countries are un Islamic.

 

[kawaraj]

continuous bullies and invasions let the whole world hate the US, thus less trust.

the Green Bill is susceptible to this trend. only a matter of time evil whites will be buried in the hell, together with its dirty dollers.

 

[Obambam]

You want your islam countries replaced with one Caliph, and those cut-hands, stone-to-death type of mid-eval laws???

Western democracies aren't without its flaws either. They can never make up their minds and when they do, they will go invade somebody and blow up a city or two.

 

[ephone]

I did not even mention western democracies and I have never said western democracies are perfect either. What is the point dragging this extra here?

Western democracies aren't without its flaws either. They can never make up their minds and when they do, they will go invade somebody and blow up a city or two.

 

[Hack-Hook]

US dollar is extremely popular in Tehran...everything..from street hawkers for screw drivers to the street hooker demands payments in dollars! Thats a big FAIL of the ayatollah regime!

Well I assure you that all of those you mentioned demand the payment in Rial (Iranian one not the one that belong to KSA) and accept the payment in $ and € and £.