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Iran to Change 45 Billion Euros for Dollars, Gold: Report

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posted on Jun, 2 2010 @ 07:13 AM
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Well, well, well, it seems that our friends in Iran wants the dollar again.

This is so hilarious, no long time ago Ahmadinejad told reporters at that time the dollar was a "worthless piece of paper."

Now he wants to change some billions of Euros into USD, because Euro seems to be doing so bad, even with the promises that it will come back again.

But the question is how will Iran accomplish this when they are heavily sanctioned by the US, money transfers are also limited, but in this days and time, money talks and you know BS walk


Iran's central bank will sell 45 billion euros from its reserves to buy dollars and gold ingots, a report on the website of state-owned Press TV said on Wednesday.

There was no announcement of the sale on the bank's website and officials at the bank declined comment.

Following the report, the euro eased slightly versus the dollar from around $1.2227 to $1.2213.

Traders said the news was having limited impact on the euro, and some in the market were sceptical about whether Tehran would be able to buy significant amounts of dollars, given that U.S. depository institutions are banned from processing transfers involving the country.


www.cnbc.com...




posted on Jun, 2 2010 @ 07:17 AM
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I'd imagine they'll use FX or the like. It's not difficult to trade EURUSD.

They probably lost out on both ends of this though. Buying the Euro's in depreciated USD. And then buying USD in depreciated Euros.



posted on Jun, 2 2010 @ 07:35 AM
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i'm sure a lot of european banks will buy up those euros from Iran, because they will have a swap arrangement with the USAs Federal Reseve
that is buying up the toxic assets held in the bank treasuries.

the banks will get fees for taking in the Iranian Euros, then make another fee for swapping their USD (they accrued from the EU-USA swap facility)
for the Iran held €'s....then possibly getting a fee for selling them the Gold itself.

If the USD is the best money=gold ratio , then Iran will 'hold-its-nose'
and do a USD deal.... thats not being hypocritical, thats being smart & savvy



posted on Jun, 2 2010 @ 07:40 AM
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reply to post by St Udio
 


I have to laugh at the news, because Ahmadinejad will talk so much trash when it comes to US but then they have no problem taking advantage of the USD.

they are business Worthy after all.



posted on Jun, 2 2010 @ 07:45 AM
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reply to post by marg6043
 


Well his obligations are to the Iranian people who are not doing so well given so much sanctions, youth unemployment very high etc so if this benefits their economy then it's a wise thing to do. I think the euro will bounce back though and even stronger than before. It will still get worse but it will be a good opportunity to integrate even closer under the guise of a euro zone collapse.



posted on Jun, 2 2010 @ 09:04 AM
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reply to post by marg6043
 




how will Iran accomplish this when they
are heavily sanctioned by the US


If they're willing to do it, they might not be sanctioned for much longer.



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