View Full Version : Trading Oil in Euros- Does it Matter?
01-30-2006, 05:59 AM
Interesting article. Any thoughts on how this might affect the Dinar? :rolleye03
01-30-2006, 08:03 AM
I would assume if the US even lets this happen and if other countries jump on board then you will see the rapid decline of the dollar which will cause other currencies to rise against it but I do not want to see this scenerio play out!!!
01-30-2006, 10:25 AM
Anyone else find it a strange coincidence that the latest "rumors" are that the dinar will be pegged to the Euro in March of this year- and lo & behold this article claims that the Iranians are looking to launch their Oil Bourse in March of this year- backed by the Euro?? What's up with that?? :rolleye03
One thing I noted from this article is that it seems that if the Dinar does peg to the Euro, then it won't put a dent in the CBI's US dollar reserves, therefore keeping the Dinar value stable. Anyone else get that??? Am I understanding this correctly?? :confused:
01-30-2006, 10:58 AM
If there ever is a RV, leave your money in an Iraqi bank (for those who have their Dinar in a Bank like Warka). You could apply for a credit card to access your money as a line of credit. This way, your money stays in Dinar and isn't taxed. :cool:
01-30-2006, 01:16 PM
I think there is room for both the Dollar and the Euro to be used as currencies for the purchase of oil.
However, I think its unfair that countries that do have a tradable and stable currency cannot buy oil in their home currency.
Being forced to buy in dollars (as it is currently) just gives the USA free money because a country must "sell" something to the USA in order to get dollars to buy oil with. The dollars they get in exchange for their goods are just printed for next to zero by the USA. That's how the Petro-Dollar works. A "money tree" for the USA.
The "money tree" pays for the US Military to be 20 times bigger than anybody elses.
Saddam Hussien was switching to the EURO for oil payments. He got permission from OPEC. Then some more Arab Nations began asking about the right to get payment in EUROS only. (a snub at the USA).
This would have caused a domino effect. It's academic now anyway, Iraq was invaded by the USA, and payments for Iraqi oil were switched back to the US DOLLAR within days.
Iran is promising to only sell oil in EUROS. Surprise surprise, they too are now a "Pariah" state and "action" against them is being planned.
One of three things will happen in the future.:shhh:
1. Iran needs to switch back to selling oil in US dollars or face military strikes by Israel and their sock-puppet the USA.
2. The USA will admit that the "money tree" is dying and concentrate on offering the rest of the world quality goods at reasonable prices.
3. Trade Santions against the USA by a multi-national coalition which includes the EU (minus the UK), Russia and China until they stop invading counties without international approval.
01-30-2006, 01:44 PM
Now that sounds very interesting!
01-30-2006, 02:19 PM
Oil in Euro will affect the EURO Dollar and US Dollar....
Oil sold in US dollar - Investment in US Securities (countries/companies do not want to exchange money to lose in cross currency exchange)
Oil sold in Euro - Investment in Euro Dollar Based Securities.
So Oil sold in Euro - Stronger Euro Weaker Dollar.
If Im wrong correct me thanks :)
01-30-2006, 04:08 PM
then sells dollars to purchase Euros to exchange for oil. More demand for Euros, greater supply of Dollars (strong Euro, weak Dollar). To keep the Euro weak, EU will need to increase the supply of Euros either by printing more money or lowering interest rates to encourage foreign investment; US will increase interest rates or risk higher inflation.
01-30-2006, 04:24 PM
That's the reason that there is so much talk in the news about Iran and other petroleum exporting nations switching to the Euro and away from the USD. The smart money is buying Euros and selling dollars. That's about 99% of the reason. The other 1% is politics.
If you don't believe it, follow the market carefully this year and you'll see the dollar get hammered by the Euro.
01-30-2006, 04:40 PM
The Euro bourse in Iran will cause the US a great deal of harm because it allow the Euro to become a second reserve currency. I dont think the US will allow this to happen. One reason is prior to Iraq invasion Saddam changed to the Euro as his method of Payment for oil. After the invasion the oil is pegged once again to the dollar.
Any way I borrowed this article from another website and it is about calculating the odds of war with Iran. I thought you guys should know that the Oil Bourse will be part if not all the reason the US goes to war with Iran.
Very interesting read.
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