Iran moves back to the Dollar

Iran announced way back around 2006 that it would sell more oil for Euro’s and transition away from U.S. Dollars. This was of course ammo for the “collapse of the dollar” crowd. After all, the U.S. imports enormous quantities of crude and so the dollar must be losing its reserve status if we can’t even buy oil with dollars right?

Well, Iran has just announced a giant about face. You see, they are curtailing oil sales in Euros and going back to the Dollar. Turns out the Euro isn’t so great afterall. Oh, how sentiment changes fast! As I’ve argued before, the Dollar may be an unattractive currency, except for all the rest!

June 8, 2010 - Posted by Brett | Economics | Dollar, Euro, Iran, reserve currency, Reserves

1 Comment »

Ha. Funny how we don’t hear much talk about the ‘supercurrency’ based on IMF credits (or whatever) these days – though the gold standard folks are having a field day – because, I guess, they just can’t get enough deflation.

[key for the economically impaired: big bouts of deflation are bad things to have]

Comment by Jon Blumenfeld | June 8, 2010 | Log in to Reply

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Brett Spurr has been on and around Wall Street since the age of 19, nearly half a lifetime ago. He helped make investment decisions for a $15 billion mutual fund complex. While locking horns with CEOs was fun, he now runs a personal financial planning firm helping individuals navigate their financial lives. Brett is a CERTIFIED FINANCIAL PLANNER ™ certificant and investment manager by day and a full-time geek who delights in debating all things financial or economic.

Karl Mamer is host of The Conspiracy Skeptic podcast, a 12-part look at conspiracies of today and the not too distant past. Karl is also the world’s greatest living proponent of Franglais. He also likes to bait Nigerian Bank Scammers and hosted his own podcast about teaching English in Seoul, South Korea. Karl lives in Toronto, Canada and works as a senior technical writer to pay the bills.

Julio Guardado is a former tech CEO who after surviving a tech start-up during the dot com bust decided to join the dark side and become an investment banker. While wining and dining CEO’s (we call it “locking horns”) is great, he enjoys getting inside their heads and companies even more. Julio also runs RV Investor, a web site that specializes in the recreational vehicle industry. Julio lives in Silicon Valley.

Jon Blumenfeld has been on and around Wall Street since 1989, as a trader and researcher in interest rates and their associated financial products. Most recently he was an Interest Rate Strategist at Bear Stearns and Co., where he was named to Institutional Investor Magazine’s All-America Fixed Income Research team for Interest Rate Derivatives in 2007.

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