Iran to start selling oil for Euros
So from 2006, Iran will start selling its oil against Euros...
Well, if you don't understand why this is an important news for the world economy, read the article and also the recommended ones at the end of it.
The USA enjoy a HUGE benefit from having the oil sold and bought with US dollars. It forces the others nations to acquire dollars first in order to buy oil later on. Not only it makes the US dollar the de facto world reserve currency, but also allows them to finance their deficit on the cheap.
To put things into perspective, the US dollar now accounts for 68% of the world currency reserves, yet in 2000, the US share of global exports was only 12.3% and its share of global imports was 18.9%.
Basically, the consequences of selling more of the world oil against Euros are tremendous.
Well, if you don't understand why this is an important news for the world economy, read the article and also the recommended ones at the end of it.
The USA enjoy a HUGE benefit from having the oil sold and bought with US dollars. It forces the others nations to acquire dollars first in order to buy oil later on. Not only it makes the US dollar the de facto world reserve currency, but also allows them to finance their deficit on the cheap.
To put things into perspective, the US dollar now accounts for 68% of the world currency reserves, yet in 2000, the US share of global exports was only 12.3% and its share of global imports was 18.9%.
Basically, the consequences of selling more of the world oil against Euros are tremendous.
Labels: Economy, Geopolitics
posted by Bambitroll at
09:42
2 Comments:
I remember the Iraq planning to do so before they were invaded^B^B^B^B^B^B^Brescued.
Really interesting...
By
Anonymous, at 28/8/05 17:40
Well, Iraq was already using Euros when the US moved in. The first thing they did was to re-establish the dollar as the oil maney...
By
Bambitroll, at 28/8/05 19:54
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