Analysts said Tehran had been steadily shifting its foreign-held assets out of dollars since 2003 and that Monday's announcement was unlikely to affect the value of the dollar, which has weakened significantly in recent months.

An Iranian spokesman said all its foreign exchange transactions would be conducted in euros and its national budget would also be calculated in euros as well as its own currency.

"There will be no reliance on dollars," said Gholam-Hussein Elham.

"This change is already being made in the currency reserves abroad."

The currency move will apply to oil sales although it is expected that Iran, the world's fourth largest oil producer, will still accept oil payments in dollars.

Iran to appoint 'oil bourse' chief

A senior Kish Island official said Saturday that the managing director of Iran's first petroleum exchange is expected to be appointed soon, bringing the oil-rich nation a step closer to opening its first 'oil bourse'.

President Mahmud Ahmadinejad has directed Iran's ministers of oil, economic affairs and finance to appoint the board of directors of the oil exchange and its managing director.

He also said the building which will house Iran's first oil exchange has been constructed on the Persian Gulf island of Kish and that the required technical equipment has been installed.

Shayesteh added that three major organizations are involved in the groundbreaking project, saying that coordinating efforts between the various groups initially delayed the project.

According to the senior official, the articles of association for the oil exchange have since been approved.

Last month, a separate official announced that the petroleum exchange would begin operation "in the near future."

The new oil exchange ... will be the world's first euro-denominated petroleum exchange.

Iran 'euro-based' oil bourse underway
The stock market will be open to the public soon after the appointment of a managing director and members of a board of directors.

Last month, after a year of speculation, Iran changed its oil bourse from petrodollars to petroeuros.

Iran's crude customers shifting currency

Iran's efforts to switch from U.S. dollar to other currencies in crude oil deals appear to be progressing.

An official with Iran's oil ministry says 60% of payments are now made in non-dollar currencies.

Iran has succeeded in ensuring that almost all European and some Asian clients have agreed to pay in currencies other than U.S. dollars, a senior oil official said on Thursday.

"Pricing as you know is based on the quotations that we get from the international market and when the international market quotes anything for crude or for the products all of them are for the U.S. dollar," Ghanimifard said.

With exports hovering around 2.4 million barrels per day, Iran's annual income from crude sales stand at an average of above $40 billion.

Iran's leading crude clients are the big Asian consumers Japan and China with Italy and France the leading European clients.

March 27 (Bloomberg) -- Iran is cutting its U.S. dollar reserves to less than 20 percent of total foreign currency holdings, and will buy more euros and yen as tensions with the U.S. increase, Central Bank Governor Ebrahim Sheibany said.

The country can sell its oil in euros or any other currency, Sheibany told reporters. Buyers ``don't mind to switch because they need our oil,'' he said.

Iran exports 60 percent of its crude to Asia, 32 percent to Europe and 8 percent to Africa. It is the world's fourth-largest oil exporter and the second-largest producer among the Organization of Petroleum Exporting Countries.

Iran will probably sell euro-denominated Islamic bonds either this year or next year, he said, without giving a value for the proposed sale.

BEIJING (Reuters) - China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year ...

"Most of China's purchases have shifted to euro. It's not difficult so long as our banks can handle that," said a Chinese state oil trader.

Japanese buyers, including top refiner Nippon Oil Corp., said they had all received inquiries from Iran to pay on non-U.S. dollar terms, but were awaiting an official request.

Iran cuts foreign dollar assets to 30 percent

“After the strong fall in the dollar and the decision to transfer our foreign currency reserves into euros, we have taken measures and now 70 percent of Iranian assets are in euros, other currencies or gold,” said Deputy Economy Minister Mohammad Zahedi Vafa.

Iran had announced earlier this year it was switching out of dollars and would instead save its foreign assets in other currencies to dampen the effects of US pressure on its financial system.

Caretaker Oil Minister Gholam Hossein Nozari has said that already 60 percent of Iran’s oil transactions for export are carried out in euros.