03 May 2008

End of the US dollar?

Is this the beginning of the end for the US dollar as an international currency?

Iran Ends Oil Transactions In U.S. Dollars, OPEC's Second-Largest Producer Now Pegs Petroleum To Euros And Yen - CBS News:
(AP) Iran, OPEC's second-largest producer, has completely stopped conducting oil transactions in U.S. dollars, a top Oil Ministry official said Wednesday, a concerted attempt to reduce reliance on Washington at a time of tension over Tehran's nuclear program and suspected involvement in Iraq.

Iran has dramatically reduced dependence on the dollar over the past year in the face of increasing U.S. pressure on its financial system and the fall in the value of the American currency.

The Rand, unfortunately, seems to be following the US dollar, and dropping against the Pound and Euro. Perhaps we need to link to the Euro. Or perhaps we need asn Afro. On second thoughts, thinking of Zimbabwe, perhaps we don't.

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