The Iranian Oil Bourse Will Be A Stepping Stone For The Fall Of Dollar Hegemony.
With oil priced in dollars through trade agreements made in the 70's, opening an exchange that will accept all other currencies for oil will destroy the dollar's monopoly, thereby decreasing the need for foreign countries to hold dollars in their reserves to purchase oil products, causing an even more drastic drop in the value of the American dollar's purchasing ability throughout the world.
Yes, I think this is clearly true. The dollar is the world's reserve currency of choice primarily
because oil is priced in dollars. When this ceases to be true, the dollar will be a much less
popular choice for central banks around the world. The United States will be exposed to economic
reality to a much greater extent than heretofore. At the moment, the US can essentially just print
money and get away with it.
Saddam was threatening to sell Iraqi oil for Euros shortly before his country was invaded and some
speculate that this was a factor in the decision to take him down.
01 Mar 2008 22:01
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