Eli was thinking about the recent sanctions imposed by the US on Iranian banks. It occurred to him that it would be risky for Iran to take payments for its oil in dollars. It appears to have occurred to someone else.
Although opening an oil bourse has so far been unsuccessful, Iran has had success in asking its petroleum customers to pay in non-dollar currencies. As of October 3, 2007, Iran currently receives non-dollar currencies for 85% of its oil exports with euros composing 65% and yen 20%. Iran is currently planning on moving the remaining 15% of dollar denominated oil exports to other currencies such as the United Arab Emirates dirham.and not so long ago
July 13 (Bloomberg) -- Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it is reducing holdings of the U.S. dollar.
Iran wants yen-based transactions ``for any/all of your forthcoming Iranian crude oil liftings,'' according to a letter sent to Japanese refiners that was signed by Ali A. Arshi, general manager of crude oil marketing and exports in Tehran at the National Iranian Oil Co. The request is for all shipments ``effective immediately,'' according to the letter, dated July 10 and obtained by Bloomberg News.
Eli offers this as necessary but not otherwise much noted information needed to figure out what will happen in the near future.