Iran to require oil payments in euros
By United Press International
TEHRAN, May 15 (UPI)
-- Iranian President Mahmoud Ahmadinejad
announced Friday that in July Iran will abandon dollar payments
for its oil and natural gas exports in favor of euros.
The move comes amid a standoff between Tehran and Washington
over Iran's nuclear fuel enrichment program. The Bush
administration insists the program is cover for a nuclear
weapons program, a charge that Iran denies.
All current international oil transactions on the New York
Mercantile Exchange and London's International Petroleum
Exchange are priced in dollars.
Middleeastforex.com reported May 13 that Ahmadinejad announced
the change Friday during a visit to Baku, Azerbaijan.
Many political observers see the decision as an attempt to
pressure Washington, which is attempting to line up other U.N.
Security Council members to act against Iran for its nuclear
policies.
Iran has also proposed establishing a euro-based Iranian oil
bourse to compete with NYMEX and the IPE. The proposal was first
put forward in the beginning of the Third Development Plan
(2000-2005), and began to receive serious attention in 2005.
Some observers speculate that the Iranian switch to euros could
negatively affect the dollar, as many central banks from oil
importing nations could choose to stock up their currency
reserves with euros rather than dollars.
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