Iran has begun to sell oil, but in euros. They think this is some sort of blow to the USA, but in fact, they are taking on the currency risk of the euro. This could be interesting for when the euro resumes its decline they will actually be undercutting everyone else who is pricing in dollars.…Armstrong Economics
Iran Tries to Kill Petro-Dollars But They Know Not What They Do
Martin Armstrong
See also
Iran's Oil Production Costs $3-7 per Barrel Depending on Extraction Zone
1 comment:
" but in fact, they are taking on the currency risk of the euro."
Not really. It's just a way of injecting their own currency into their economy.
Post a Comment