Thread: iran and the dollar

CBI breaks with the US dollar
Tue, 23 Oct 2007 13:14:09


Iran converts its dollar reserves.
The Central Bank of Iran says the process of converting the country's dollar reserves to other foreign currencies has been completed.

The process of diversifying Iran's foreign exchange reserves by converting reserves held in dollars to other currencies is almost complete, Fars news agency quoted Tahmasb Mazaheri, President of the Central Bank of Iran, as having told the American publication, The Emerging Market.

He added that the procedure has been carried out in the best possible way and achieved maximum results.

Experts believe Iran has gained huge profits by adopting the measure because of the sharp fall in the value of the US dollar.

Other countries are also said to be taking similar measures for the same reasons. Arab Persian Gulf states, for one, are believed to be holding 30 percent of their foreign exchange reserves in currencies other than the dollar.

MJ/GM/BGH

why does our government allow us to get into these positions. I hope the next president can get us out of these trade deals that are not beneficial to us. Like Ron Paul who seems to have a clear idea of economics ow to get us out of this caos. Get us out of the UN and redo our trade deals to benefit us.

Originally Posted by agrneydgrl

why does our government allow us to get into these positions. I hope the next president can get us out of these trade deals that are not beneficial to us. Like Ron Paul who seems to have a clear idea of economics ow to get us out of this caos. Get us out of the UN and redo our trade deals to benefit us.

I'm not trying to argue on behalf of the globalists but some of the biggest hits on the US dollar in the last few years have come from the conservative side. We've got problems on the right and on the left.

The US dollar took a huge loss (around twenty percent) in the year of the huge Wall Street scandals. Many people (in the US and abroad) who would have been investing in US stocks were panicked at the wave of dishonesty and greed that had gripped some of the biggest US companies. The bursting of the Tech Bubble was another factor. A third major factor was the federal budget deficit brought on by the US invasion and occupation of Iraq.

Now, we also have foreign adversaries who advocate that banks should start reducing , or entirely abandoning, their holdings in US dollars. That is part of the reason for petroleum exchanges (now handled in US dollars) being advocated for oil exporting regions (Middle East, Russia) and handled in other currencies. I would have no qualms about wiping Al Qaeda off the map but our invasion of Iraq may have made them much more powerful.

The bright spot is that a a weaker dollar is supposed to make US products more affordable and thus stimulate our economy. So, for example, instead of Americans going to Canada to bargain hunt, they may end up shopping here.

Tnak you for expalining this to me. I am really economically illeterate. I knew that there were probably other factors involved, but was not sure what they were.