Iran No Longer Trading Oil for US Dollars

By Ryan McGreal
Published April 30, 2008

Iran has announced that it no longer accepts US dollars for oil.

Most of the world's oil transactions are conducted in dollars, which benefits the US by providing a ready-made market for dollar denominated securities and allowing the US to run large current accounts deficits.

However, that started to change as countries began abandoning the so-called petrodollar system. Iraq began trading oil for euros in 2000 (and was invaded not long after), and Venezuela began trading oil for anything not long after.

Two months ago, partly as a rebuke against American threats and interference, Iran opened the Iranian Oil Bourse (IOB), an oil trading market priced in currencies other than the dollar.

Iran has been threatening to abandon the dollar for some time, and the IOB was launched to begin diversifying away from dollars.

Now Iran has phased out dollars completely and is also unloading its dollar denominated foreign exchange reserves.

In totally, completely unrelated news, the US just brought another aircraft carrier group into the Persian Gulf as a "reminder" to Iran of US military power.

Ryan McGreal, the editor of Raise the Hammer, lives in Hamilton with his family and works as a programmer, writer and consultant. Ryan volunteers with Hamilton Light Rail, a citizen group dedicated to bringing light rail transit to Hamilton. Ryan wrote a city affairs column in Hamilton Magazine, and several of his articles have been published in the Hamilton Spectator. His articles have also been published in The Walrus, HuffPost and Behind the Numbers. He maintains a personal website, has been known to share passing thoughts on Twitter and Facebook, and posts the occasional cat photo on Instagram.


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By This Means War (anonymous) | Posted April 30, 2008 at 15:21:24

Saddam went off the dollar and Saddam got overthrown. Venezuela went off the dollar and the CIA tried to overthrow Chavez. Now Iran's going off the dollar and the threat of war suddenly ratchets up.

Anyone for $200 bucks a barrel by years end??

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By trey (registered) | Posted April 30, 2008 at 16:36:05

Let's hope Obama wins.

If Obama becomes President and survives an assasination attempt he might be able to reinvent the US and promote the development of alternative energy.

Essentially continue what Jimmy Carter started, minus the devastation years between caused from Regan, Bush 1, Clinton and Bush 2.

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By jason (registered) | Posted April 30, 2008 at 17:39:10

I don't think it matters who wins. Washington is Washington. One person won't change anything.

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By peter (anonymous) | Posted May 01, 2008 at 02:15:38

can you say 'shock and awe'?

iran is really pushing the envelope here. if nothing else, you've gotta respect their chutzpah.

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By Moneyfornothin (anonymous) | Posted May 01, 2008 at 12:01:09

Go to YOU TUBE and do a search for Lindsey Williams.
Listen and watch his videos. Events are starting to unfold as he stated they would. Don't be surprised when the U.S. invades Iran.

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By Frank (registered) | Posted May 01, 2008 at 15:59:38

Hey This Means War, I have a very good Venezuelan friend who didn't like Chavez so w/e. Obviously the US doesn't like it when ppl play with their oil seems like they might be slooooowly starting to move into alternative sources. Not a fan of biofuel myself, electric car for sure and for goodness sake Mass Rapid Transit!!! On the up side, Mac is tooting the horn of their new automotive r&d programs in the Spec today...

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By Trey (registered) | Posted May 03, 2008 at 09:24:14

I don't believe Obama will attack Iran if he becomes President. He will also pull-out of Iraq. He'll make the world a safer place as President, the unforturnate thing is by doing so, he'll risk his own life.

Prediction Obama beats Hillary in NC and IN. Clinton is forced out of the race. Obama beats McCain in November. Clinton is not VP, but I think it will be a woman VP. Assasination attempt on Obama 10 months into his term.

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By FJ (anonymous) | Posted May 06, 2008 at 10:46:58

many political issues surrounding this, but the simple fact of the matter is our world is overpopulated and the US can't afford to lose its stronghold on oil with China & India creating billions of middle class citizens who want first world lifestyles with each passing year. far less people consuming is the only solution to ANY non-renewable energy source. hybrids are not the answer; fewer people consuming oil is the answer, as well as curbing the use of plastics in areas other than motor oil and gas.

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