Iran dumps U.S. dollar for oil trades

Discussion in 'Trading' started by seasideheights, Apr 30, 2008.

  1. Not really that big of a deal, actually. There won't be a war or an attack as a result, nor will there be a depression on the US side that leads to people eating dog food. People love to masturbate to such scenarios though.
  2. bradstal


    not that big a deal? i beg to differ. Iran is opecs 2nd largest producer and to cut out the u.s. currency out of their sales means a great deal of downward pressure on u.s. dollar in the foreign market. Its actually pretty significant and i don't know how someone with some basic knowledge of macro economics and currency can make such a statement.
  3. Oil is fungible (thank you thriftybob) and can be traded in any known currency - the value should be the same, less currency exchange fees. The real problem with the value of the dollar lies not with the Iran Oil Bourse but with Ben Bernanke and his rate cuts that have effectively robbed everybody in the world who owns dollar denominated assets.
  4. This is bullish for the dollar.

    The Iranians no longer need to dump those dollars on the market to get Euros or Yens.
  5. I disagree with your last sentence. Ben Bernanke has robbed anyone owning dollars or instruments payable in dollars such as bonds, but US Housing was able to escape an all out collapse thanks to Ben.
  6. Pachoo


    I am short the Euro / USD. Made a nice profit overnight. :)
  7. How is this bullish when he dump the dollar and buy the euro and yens?

  8. Pachoo


    None of the other oil producers are switching out of the dollar.

    Dollar will gain strength the rest of 2008.