Iran to convert 45 billion euros into dollars, gold: report

Iran to convert 45 billion euros into dollars, gold: report

www.eubusiness.com

(TEHRAN) - The Central Bank of Iran is converting 45 billion euros of its foreign exchange reserves into dollars and gold ingots, the English language Press TV channel reported on its website Wednesday.

The report said the bank's new monetary policy comes against a backdrop of a new phase of economic recession in Greece and Spain which has caused a drop in the value of euro against the dollar in global markets.

(visit the link for the full news article)





[edit on 2-6-2010 by kdial1]

Wow!! Ready for the Euro to fall tomorrow!!

Should be interesting to see how the markets react to this. Will this be the push in the back to force the Euro further downward into the abyss?

Would like to hear from some of our more seasoned economists here on ATS.

Without elaborating, it said the monetary plan was to be carried out in three phases, adding that the first stage of the programme had already begun.

-Kdial1

www.eubusiness.com
(visit the link for the full news article)

Saw this early this morning and the markets really didn't react, don't know the debt we are talking about, but I headed to Europe this moths so a failing Euro is great! There are at least five or six more countries in the EU that might default like Greece did. I even heard rumors that the Germans already have Duesch marks ready to go back into service shortly.

Where is all the dollar doom? LOL. Nice when your foes have to rely on you for their survival. Isnt it Iranic...

They are geting ready to block Hormuz... - That will cause so huge inflation in Eurozone that there is no Eurozone after that - but expensive dollar because rising (3-4 times) oil prices.

Iran has now its momentum to fight back against USA/Israel when Turkey is with Syria-Lebanon-Iran axis. War in July - escalation in June.

Also, keep in mind that the kingdom of Saud no longer trades oil in Dollars...

WHEN the Euro fails, this will mean that Iran steals a march over Saud in a regional power play.

Parallex.

reply to post by NecromancerYHVH


Good for Germany. They should not be feeding this monster aimlessly anymore. Drop the EU.

reply to post by Xeven


Lol... please tell me you were being Ironic with "Iranic"

Didn't Iran change it's Dollars into Euros a while ago?

Isn't this just one of the money switchovers that goes on all the time?

Of course, changing 45billion Euros into Dollars is going to have an effect on the value of the currency, but it doesn't really have any bearing on the overall operation of the currency.

If we were talking hundreds of billions of Euros, then we'd see a really destabalising effect. Instead it's a measly 45 billion. Not really a lot in the grand scheme of things.

According to the European Central Bank the value of Euro banknotes in cirulation is 797,000,000,000 (797 BILLION!). The value of the coins in circulation is: 21,305,000,000....

So the amount that Iran is converting isn't going to have that much of an effect.

Originally posted by Xeven
Where is all the dollar doom? LOL. Nice when your foes have to rely on you for their survival. Isnt it Iranic...

EU is an Iranian foe too, it is a better idea to take down the more wounded EU first then the US/Israel.

Great warfare going on right now, very interesting.

[edit on 2-6-2010 by LittleSecret]

Originally posted by Parallex
Also, keep in mind that the kingdom of Saud no longer trades oil in Dollars...

Parallex.

That is not correct. They do still use Dollars - what else are they going to use?

Saudi Arabia, a U.S. political ally in the Middle East, has resisted calls for a move away from the dollar in oil pricing as the American currency lost value in recent years.

reply to post by crisko

Saudi Arabia, a U.S. owned state in the Middle East, has resisted calls for a move away from the dollar in oil pricing as the American currency lost value in recent years.

I fixed it

If Iran is wanting to do this, then they will turn to their allies, Russia and China, for assistence. They will first try to get gold, as it is a means to back up their currancy and be as economically stable as possible. If they can do such, they will, or they will go for US dollars, which would come from China. Now if they really wanted to make things interesting, they would seek to purchase the bonds that some of the different countries hold, like China, assuming part of the liability for such, thus the US would have to pay them interest, or call in the bond, and demand repayment, adding more to the burden of the US debt, and then once they had money in hand, do it all over again and again, till our debt is way out of control, slowly collasping the US economy.

Originally posted by LittleSecret

Saudi Arabia, a U.S. owned state in the Middle East, has resisted calls for a move away from the dollar in oil pricing as the American currency lost value in recent years.

I fixed it

I see what you did there

But that external quote is direct from the Bloomberg website.

This is good for US, bad for the EU.

If Iran would have done this a few years ago the converstion rate from euros to dollars would given them a lot more dollars because euros were much stronger than dollars. The euro is still worth more than a dollar as of today.

1 euro = 1.2 dollars.
So, 45 billion euros is equal to 55 billon dollars.

At the euro's peak in 2008 each euro was equal to 1.6 dollars. If Iran did this in 2008, their 45 billion euros would be equal to 72 billion dollars.

reply to post by tooo many pills


And that's why it doesn't make sense.

Why sell when it's at a low price?

reply to post by ArMaP


Euro could drop lower. Maybe, Iran's National Bank predicts an increase in inflation for the euro from the Greece bailout. Maybe, they don't want war and want to be like us. I have no idea.

[edit on 2-6-2010 by tooo many pills]

reply to post by JanusFIN


Well, Asia and the Americas are ready. Remember the oil pipeline from Russia to Pacific? China and Japan cannot afford to have no oil. Indeed. It's Europe and maybe India that will suffer greatly. Singapore which depend greatly on ship trade is gonna be toast!

The damage of dropping the euro is more of a mental thing than a physical thing. I shows a lack of faith from a major oil seller that the euro will maintain or rise back up. That is especially important since they had switched from dollars to euros not all that long ago.

The only reason you do that is if you are dead certain you are better off cutting your losses. That is a bad signal to the markets.


Also, war in Iran has never looked less likely. Trying to change the currency for oil trade has been a major behind the scenes reason why they wanted the current administration in Iran out. Saddam announced a full conversion to oil trade in euros and we invaded. Iran announced intent to do it and ended up on the Axis of Evil list. Fact is, Iran moving back to dollars is a double win for us. It is a win because the Euro will fall, and people will turn to the dollar, and also a diplomatic win because the US will be less inclined to act since there is no threat of currency changing.

Originally posted by LittleSecret

Originally posted by Xeven
Where is all the dollar doom? LOL. Nice when your foes have to rely on you for their survival. Isnt it Iranic...

EU is an Iranian foe too, it is a better idea to take down the more wounded EU first then the US/Israel.

Great warfare going on right now, very interesting.

[edit on 2-6-2010 by LittleSecret]

yeah right, this is pocket change for the real speculators and the big boys at the Hedge funds, they dont take these clowns serious...The Euro is still stronger then the Dollar and the Greek bailout[>inflation] is nothing compared to Santa Claus Barry and his bailmoney..A little weaker euro is only good news for our export, specially here we like that...