Iran Just Officially Ditched the Dollar in Major Blow to US: Here's Why It Matters

Iran Just Officially Ditched the Dollar in Major Blow to US: Here's Why It Matters...
theantimedia.org 03/02/2017 Arts

Keywords:#African, #American, #Arab, #Arabia, #China, #Donald_Trump, #Emirates, #Financial_Tribune, #Forbes, #Iran, #Iranian, #January, #Middle_Eastern, #Muslim, #Nixon, #OPEC, #Organization_of_the_Petroleum_Exporting_Countries, #President, #Richard_Nixon, #Saudi, #Saudi_Arabia, #UAE, #US, #United_Arab_Emirates, #Valiollah_Seif

By February 1, 2017 | Alice Salles
(ANTIMEDIA) Following President Donald Trump’s ban on travelers from seven predominantly Muslim countries, the Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports,” the local Financial Tribune reported.
Iran governor Valiollah Seif’s central bank announced the decision in a television interview on January 29. The change will take effect on March 21, and it will impact all official financial and foreign exchange reports.
“Iran’s difficulties [in dealing] with the dollar,” Seif said, “were in place from the time of the primary sanctions and this trend is continuing,” but when it comes to other currencies, he added, “we face no limitations.”
In a piece published by Forbes, Dominic Dudley contends that this move is significant “in the light of the recent ‘Muslim ban‘” announced by Trump. Iran nationals were added to the order issued by the current U.S. administration, which prompted the Iranian government to vow to stop issuing visas to U.S. citizens.
Dudley notes that since 1975, “no Americans have been killed in terrorist attacks in the US by the citizens of the countries included in the ban,” while countries such as Saudi Arabia — “home of 15 of the 19 terrorists involved in the 9/11 attacks” — were left out of the list of prohibited countries
Despite the country’s decision to halt the use of the U.S. dollar as its base currency for exchange with other nations, Iran’s top export is oil. In the global markets, oil is mainly purchased and sold in U.S. dollars. This fiscal year, Iran is expected to earn $41 billion from oil sales, with countries like the United Arab Emirates (UAE) and China as their top clients. It’s still uncertain how the country will manage to switch currencies without relying on the American currency. The shift, Dudley notes, “will add a degree of currency risk and volatility and is likely to complicate matters for the authorities.”
This matters because predominantly Muslim countries left out of the “Muslim ban” include Saudi Arabia, one of the world’s top oil exporters.
In the 1970s, the Arab nation struck a deal with U.S. President Richard Nixon establishing an alliance that would maintain the dollar as the standard oil exchange currency in exchange for military support from America. The use of the dollar as a standard currency for oil exchange was accepted by Saudi Arabia and the remaining block of Organization of the Petroleum Exporting Countries (OPEC), which include Iran and 11 other Middle Eastern, African, and South American countries.
---The Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports.” ---
...

Read more from Source »

Related articles based on keyword density
Media Scam? Iran and America Join Hands in Waging “The Global War on T...
globalresearch.ca 01/07/2014 Politics
By Prof Michel Chossudovsky Global Research, June 21, 2014 Following the incursion of jihadist rebels of the Islamic State of Iraq and the Levant (IS...View Details»

ISIS: The Spoils of the "Great Loot" in the Middle East - FPIF...
fpif.org 02/07/2014 Politics
Adding yet more warfare to the current crisis in the Middle East will perpetuate exactly what the imperial powers set out to do: tear an entire region...View Details»

Iran’s water crisis the product of decades of bad planning - The Washi...
washingtonpost.com 03/07/2014 Nature
By Jason Rezaian July 2 at 7:00 AM Follow @jrezaian TEHRAN — Iran is headed for a water shortage of epic proportions, and little is being done to re...View Details»

Organization of the Petroleum Exporting Countries (OPEC) Created ...
parseed.ir 12/09/1960 History
OPEC (Organization of the Petroleum Exporting Countries) is an international organization and economic cartel whose mission is to coordinate the polic...View Details»

Qatar Blockade: Between A Corrupt US President And impulsive Middle Ea...
iranian.com 10/06/2018 Politics
by Middle East Monitor Like his war on Yemen, heir apparent to the Saudi throne Mohammed Bin Salman no doubt felt confident that adding another bellig...View Details»


EOF