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

[lem34]

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

By Nayla Razzouk - Jan 7, 2012 1:39 PM GMT

Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow.

The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization, the ambassador said.

Iran has replaced the dollar in its oil trade with India, China and Japan, Fars reported.

The European Union, the U.S. and the United Nations are applying sanctions against Iran over its nuclear program. Iran says its nuclear efforts are for civilian purposes and to generate electricity, while the U.S. and several major allies say the program represents a weapons threat


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

 

[fd24]

This is indeed great news for Iran and Russia - indeed the only people this hurts is the quantitively eased dollar. Its a win win situation for all involved barr the US of A...

 

[lem34]

I am sure the Chinese will follow suit as they had already started moving to bilateral currency holdings with a number of countries

 

[Crive]

see people are starting to moving on to world which there was no US i mean before WWII
atleast we wont sell our resources for paper debt!

 

[BATMAN]

As i knew of Iran US dollar was more popular currency in local market than Riyal or Euro.
USD can be traded in Iran at almost any big shop.

Now..this will have quite serious effect on Iranian way of life.

Let's wait and see the consequences!!!

 

[ephone]

Why does Russia want to do that? The Iran currency is on the way to collapse becoming waste papers. Are those russians nuts?

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

By Nayla Razzouk - Jan 7, 2012 1:39 PM GMT

Iran and Russia replaced the U.S. dollar with their national currencies in bilateral trade, Iran’s state-run Fars news agency reported, citing Seyed Reza Sajjadi, the Iranian ambassador in Moscow.

The proposal to switch to the ruble and the rial was raised by Russian President Dmitry Medvedev at a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana, Kazakhstan, of the Shanghai Cooperation Organization, the ambassador said.

Iran has replaced the dollar in its oil trade with India, China and Japan, Fars reported.

The European Union, the U.S. and the United Nations are applying sanctions against Iran over its nuclear program. Iran says its nuclear efforts are for civilian purposes and to generate electricity, while the U.S. and several major allies say the program represents a weapons threat


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

---------- Post added at 06:49 PM ---------- Previous post was at 06:46 PM ----------

China has already reduced imports from Iran to 50% of the normal level. It seems China will reduce more in the near future under U.S. pressure.

If Iran thinks it can challenge U.S., well, I think it has to do that on its own. China is out for sure. As for russia, those sleazy russians want nothing from the fire either.

I am sure the Chinese will follow suit as they had already started moving to bilateral currency holdings with a number of countries

 

[fallstuff]

Chinese import decision has nothing to do with US pressure, it is more about payment issues.

 

[Solar Flare]

Guys, I don't understand international trade. Can anyone tell me if two nations trade and their currency is converted into dollar trade does US gets any benefit from this?

Eg: If Iran and India trade among each other. First, their currency is converted into dollar and then trade is done. So does US gets any benefit from this?

I hope you understood my question

 

[SinoChallenger]

China has already reduced imports from Iran to 50% of the normal level. It seems China will reduce more in the near future under U.S. pressure.

If Iran thinks it can challenge U.S., well, I think it has to do that on its own. China is out for sure. As for russia, those sleazy russians want nothing from the fire either.

Whose side are you on? Iran is China's ally against the USA. The Chinese leadership has already declared the USA our adversary.

 

[ephone]

Is that a joke?

U.S. has warned other central banks not to have transactions with Iran. Otherwise, it will put sanctions on those central banks. Normally, those central banks send payments to Iran for oil import. Without central bank's involvement, there is no transaction.

You do not know what you are talking about.

Chinese import decision has nothing to do with US pressure, it is more about payment issues.

---------- Post added at 11:18 AM ---------- Previous post was at 11:15 AM ----------

Whose side are you on? Iran is China's ally against the USA. The Chinese leadership has already declared the USA our adversary.

I am on China's side.

China has made decision NOT to stand with Iran firmly in this matter since China for sure does not want to challenge U.S. if there is war breaking out between U.S. and Iran.

China wants nothing to do with such regional war or conflicts between the two. China may offer some lip service support to Iran at most. We will offer no military help to Iran for sure if there is such war between the two.

 

[longbrained]

Why does Russia want to do that? The Iran currency is on the way to collapse becoming waste papers. Are those russians nuts?

Iranian Rial is to about to collapse. That is just propaganda. It just got devalued which was due for a long time, much like Euro or Dollar devalued. Read this: The fall of the Iranian rial: too much of a good thing? « Tyranny of numbers

 

[ephone]

It is not about currency conversion at all. First, if such payment is made, since $ is most demand currency, $ is used. Each country's central bank has certain amount of $ holding to make payment for international trade.

The fundamental reason for U.S.S.R.'s collapse is that its central bank has no $ left in its final days and all international trades want $ as payment. So U.S.S.R. could not afford to buy anything in the end.

The problem between U.S., Europe and Iran is that, U.S. and Europe join together to put a sanction on Iran and all other country's central banks who have business with Iran. Basically, it is you or me mutual selection. No country's central bank can afford not to have business relationship with U.S. and Europe.

In this way, U.S. and Europe basically cut off Iran's export.

Guys, I don't understand international trade. Can anyone tell me if two nations trade and their currency is converted into dollar trade does US gets any benefit from this?

Eg: If Iran and India trade among each other. First, their currency is converted into dollar and then trade is done. So does US gets any benefit from this?

I hope you understood my question

---------- Post added at 11:24 AM ---------- Previous post was at 11:23 AM ----------

Iranian Rial is to about to collapse. That is just propaganda. It just got devalued which was due for a long time, much like Euro or Dollar devalued. Read this: The fall of the Iranian rial: too much of a good thing? « Tyranny of numbers

So you think holding Iran's Rial is a safer bet comparing with holding $??? You must be either paranoid or simply joking.

 

[rai_kamal]

I am on China's side.

China has made decision NOT to stand with Iran firmly in this matter since China for sure does not want to challenge U.S. if there is war breaking out between U.S. and Iran.

China wants nothing to do with such regional war or conflicts between the two. China may offer some lip service support to Iran at most. We will offer no military help to Iran for sure if there is such war between the two.

Thats the best way to approach towards Iran..As their nuclear programm is not clear,whether it is for civilians purpose or so..
Although, applying too much sanctions on iran will won't help US as India,China,Russia,etc r against the sanctions..

 

[Arian]

As i knew of Iran US dollar was more popular currency in local market than Riyal or Euro.
USD can be traded in Iran at almost any big shop.

Now..this will have quite serious effect on Iranian way of life.

Let's wait and see the consequences!!!

all I can say is LOL.

 

[longbrained]

So you think holding Iran's Rial is a safer bet comparing with holding $??? You must be either paranoid or simply joking.

You are a simpleton who can not understand about economy. Currency is not about its worth. It is about a medium which enables trade. If a country keeps a strong currency just because to keep it strong, that country's economy is soon going to collapse, for the simple reason that exports will become more expensive and uncompetitive. Currency has to reflect the realities of trade. Dollar or Euro do not reflect those realities, neither does Yuan. Dollar's value is alot lower and Yuan's alot higher but they are kept artificially high and low. That is why American economy is in shambles and China is overheating with growth. Iranian Rial is good enough for trade with Iran. To keep a reserve the best is gold and the next best is a combination of Yen, Yuan, dollar, Euro, Swiss Franc, Canadian dollar and Australian dollar. No one currency is safe, only gold is. Dollar by itself is just a worthless paper and can fail at anytime much like Ruble and Mark had failed before it. Iran actually does not need to keep any holdings since it is sitting on top of a very expensive and needed commodity which itself is a kind of holding and reserve. That is gas and oil. Read the the above article I had referred you to inorder to understand.