Wednesday, May 16, 2018

Middle East Monitor — Iran Switches from Dollar to Euro

Iran’s feud with the US is set to get worse after Tehran announced yesterday that it will start reporting foreign currency amounts in euros rather than US dollars, as part of the country’s effort to reduce its reliance on the American currency due to political tension with Washington.
Central bank governor Valiollah Seif said last week that Supreme Leader Ayatollah Ali Khamenei had welcomed his suggestion of replacing the dollar with the euro in foreign trade, as the “dollar has no place in our transactions today”....
Middle East Monitor
Iran Switches from Dollar to Euro

See also

Unconfirmed as yet. May be premature.
An anonymous diplomatic source in Brussels has revealed to RIA Novosti that the European Union intends to discontinue paying for Iranian oil in US dollars. This is a major development which confirms a series of articles in global media which reveal the growing positive developments indicating that Atlanticism is in a serious crisis. It has cracked. Analyses by CSS and FRN’s own experts going back a number of years have forecasted that these events would eventuate...
Fort Russ
Atlanticism Cracks!: Eu To Dump U.S Dollar For Iran Dealings


Matt Franko said...

About time...

Konrad said...

PART 1 of 2

People who do not understand MMT falsely think that Iraq was invaded because Iraq started selling its oil in euros.

In reality, Iraq started selling its oil in euros in response to U.S. sanctions. Iran is also responding to U.S. sanctions.

If the USA wants to starve Iran of dollars, then Iran will simply sell oil in euros, or in Chinese yen, or whatever.

About 22 percent of Iran’s foreign trade is done with China. This percentage will start to rise faster and faster. The Empire in its arrogance is creating a global counter-bloc.

The Empire cannot change. The cancer of greed and arrogance is too far advanced. The patient is terminal.

Two thirds of of international transactions are still settled in dollars, but the euro and the Chinese yuan are gaining faster and faster. In 2013 the Chinese yuan (aka the renminbi, or “people’s currency”) was the fourth most widely used currency. Today it is the second. (The euro is #3).

The rise of the yuan reflects a rise in the world’s confidence in China’s financial system, economy, and government. Meanwhile the world is losing confidence in the USA’s financial system, economy, and government.

The USA has such a gigantic trade deficit that if the day comes when dollars are no longer accepted outside the USA’s borders, then the USA will break into several smaller nations, just like the USSR did.

Today there is still a “Russia,” and there may still be a “United States,” but it will consist of only a handful of states, not 50 states. This day is coming inevitably.

When the USA breaks up, Jews will be booted out of Palestine, and they will go to Argentina, which already has by far the largest Jewish community in Latin America. The Argentinian hinterland is unpolluted and unspoiled, and it has a very pleasant climate. Jewish billionaires are buying massive amounts of acreage there, so that Jews will have a place to go when they must leave Palestine. They are already sealing off public lakes and national parks in Argentina for their own exclusive use, and nobody dares complain about this, since to question Jewish crime is to be an “anti-Semite.”

Another reason why Iran has switched to the euro is that the Empire’s constant threats against Iran have caused an increase in black market currency trading inside Iran. This has caused inflation and economic chaos. So, for international transactions, the Iranian government has switched to the euro, which is easier to control, since euros are not as widely available as are dollars.

Continued below...

Konrad said...

PART 2 of 2

More important than Iran’s switch to the euro is the rise in alternatives to the SWIFT system (Society for Worldwide Interbank Financial Telecommunication). Most nations use the SWIFT system, and the Empire can use SWIFT to cripple anyone one of those nations.

In Feb 2012 the Empire shut Iranian banks out of the system, forcing Iran to do much of its business in cash. In February 2016, the Empire let Iranian banks reconnect to SWIFT because of the “Iran deal” (Joint Comprehensive Plan of Action). Now Israel has ordered Trump to again shut out Iran, but this time, Europe is resisting (so far).

Russia and China have developed their own alternatives to the SWIFT system, not only because of the Empire’s bullying, but because SWIFT is not secure enough. In Feb 2016, hackers used the SWIFT system to steal $81 million from the Central Bank of Bangladesh. The stolen money was digital. $81 million in hundred-dollar bills would weigh 1,782 pounds.

(Jeff Bezos’ net worth of $134 billion in hundred-dollar bills would weigh 1,474 TONS. Despite this, most people still think that money is physical and limited. This is why most people are impoverished slaves.)

In the immediate aftermath of the Bangladesh job, several other banks, most located in Southeast Asia, reported hacks involving the SWIFT system. In June 2016 hackers used SWIFT to steal $10 million from a bank in Ukraine.

Therefore more and more banks worldwide are starting to use the Russian and Chinese alternatives to SWIFT. Both Russia and China still use SWIFT, but they know that the Empire could shut them out of SWIFT at any time.

Both Russia and China also have alternatives to Visa and Mastercard.

The Empire in its greed and stupidity have made its targets stronger than ever.

The Empire cannot stop its suicide, any more than a deadly virus can stop being a virus.

Noah Way said...

The US should break into several smaller nations (regionally, with similar interests) but won't be allowed to as the unified domestic market would then be fragmented with ill effects on our financial-corporate masters.

The end result would likely be civil war - first as the Fed resisted dissolving, then as states allied and/or competed for various interests. The entire systems is so completely unsustainable that a power outage of more than 48 hours will turn any city into a hellhole.

On the other hand they could execute the Libya model - destroy all forms of government and enforce corporate rule via mercenary armies.