Iran wants to be paid in euros, not U.S. dollars


**Iran is ready to sell its oil to the world again, but it wants to be paid in euros, not dollars.
Over the weekend, a top official at Iran’s state-owned oil company said the country had a strong preference for euros.

“Our top priority is to receive cash and oil [payments] in euro,” Safar-Ali Karamati, a deputy director at the National Iranian Oil Company, told an Iran news outlet on Saturday.**

The article continues at the link.


Today they maybe should agree. 1 euro= 1.13 US dollars.


Can’t say as I blame’em.


Iran considers itself in a state of war with the U.S. and will as long as the billionaire clerics run the country.

Since the U.S. doesn’t buy their oil anyway and isn’t likely to do it, it’s not going to cause the U.S. companies to have to buy Euros. Seems to me it’s just a gesture of defiance, like “death to America” chants. But it might haunt them eventually. All currency has to eventually return to its country of origin in some manner. It might be in the form of buying products. It might be in the form of investment. It might be in the form of financial assets. It might be land. It might even be deposits in banks.

So, Iran’s Euros will have to return to the Eurozone at some point. Maybe Iran will find everything it wants to buy there, and maybe it won’t. Maybe the prices will be more favorable, and maybe not. Right now, interest rates in the Eurozone are negative. Its markets are down worse than ours. Real estate isn’t a good investment in a falling population. And there’s not a whole lot of food for export in Europe. There are a lot of countries that will take Euros or dollars, but insisting on dealing in Euros is going to limit Iran’s trade, at least somewhat.

So, if Iran really wants to “partially sanction” itself, I say let it.






I remember reading some things over the summer that suggested China was colluding with Russia to undermine the US dollar on the global market, so China could introduce its own global currency to take its place.


International trade is not so easy without a single reserve currency, because notwithstanding that some country might really like the Yuan, some other might not particularly have a use for it, preferring the more widely-circulated dollars. Let’s say that latter country needs to purchase a lot of stuff that’s produced by “dollar preferring” countries. Will they want Yuan or rubles instead if they can’t buy what they want with them and have to go to the “money traders” to get them converted, perhaps at a discount?

Completely aside from the fact that both the yuan and the ruble aren’t particularly trustworthy currencies, a trading country always has to look to the ultimate disposition of a currency it accepts for its own products.


Euros are worth slightly more than US Dollars, so I suppose that is part of it.


Well, the Euro won’t be stable indefinitely. The demographics are dismal, many if not most Europeans probably don’t want the EU as it is today and the refugee and migration crisis will only get worse as those in power in the EU try to live out what’s left of what is a dying entity.


It used to have a much more favorable exchange rate. But considering the population of the EU is nearly double that of America and given the similarities in GNP, it’s not saying much for the EU economy.


Why wouldn’t they just demand to be paid in gold? Only thing that’s strong these days.


Is there that much gold available?


Gold, silver, platinum. All available at the right price.

Weren’t they thinking about setting a certain amount of platinum at $1 Trillion?


Who turns loose of the billions that were locked up? We had better make sure who the who is and who is the recipient who! IMO the Barry/Kerry deal should be canceled! Too bad, so sad; they were not authorized to sign off on the nuke deal. Don’t pay!


Yeah, you’re right, and it’s probably one of the driving forces behind the scenes. Or that’s my guess, at least.

The guy who wrote this makes a convincing case that the best form of national security is to beef up our self-suffiency as much as possible.

It resonates with me, and I agree with him. Plus, it’s true for each of us on a personal level, too. I love the Catholic community, and we all help each other as best we can, but true self-sufficiency gives us more power to help others…:shrug:


With all the oil available on the world market today, a seller that imposes extra complications is only going to get a discounted price for its product, so this really is a disadvantage for Iran. The Iranian government does not ordinarily act in the best interests of its people, so this is not much of a surprise.

We have the same problem in the US where politicians ban new pipelines and exports of oil and gas that are in excess supply. The US government is acting contrary to the best interests of its citizens. It would also benefit world peace if our allies and trading partners had more options in suppliers for crude oil, liquid natural gas, and refined products. It would make Venezuela, Russia, and Iran less relevant and less able to misbehave in the world.


China owns more the $1.2 T of US debt so they can threaten to sell it off anytime they want. However, some one is really buying the heck out of the 10-yr and 30-yr Treasuries to push the price of those bonds higher, so China might want to hold on their holdings if not buy more.


Japan and some European countries have negative interest rates now, so US Treasuries look like a bargain at the moment. A lot of people have also sold stock in energy companies and need to park the money here, but that raises the price of the US dollar and causes oil prices in dollars to fall. That is not good for Iran either, but they have no easy way out. They don’t want US based assets in case the next US administration imposes sanctions or asset freezes on Iran.

Some might say that a financial crisis could not happen to a more deserving country than Iran, but that would be mean.


Interesting that so far negative interest rates have not produced good results, according to Bloomberg. The Japanese yen, for example, has actually risen, something I’m sure is the last thing they wanted to have happen. Markets seem to work in strange ways sometimes. There seems to be some psychology in play here, something the central banks need to learn.

Good point on the asset freezes.

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