Thu Dec 21st, 2006 at 04:34:17 AM EST
I am not an economist, but this seems to me a significant event with respect to the future development of the Euro as a reserve currency. Additionally the move by the Iranian government will also apply to the country's oil contracts.
From Al Jazeera:
The Iranian central bank is to convert the state's foreign dollar assets into euros and use the euro for foreign transactions.
"The government has ordered the central bank to replace the dollar with the euro to limit the problems of the executive organs in commercial transactions," Gholam Hossein Elham, a government spokesman, said on
Elham said that Iran's budget would in future be calculated in euros. "Until now the budget has been calculated according to revenues in dollars but this calculation will now change," he said. [...]
Elham implied that the move to the euro would also apply to Iran's oil revenues. "Foreign income sources and oil revenues will be calculated in euros and we will receive them in euros in order to put an end to our dependence on the dollar," Elham said.
A merry christmas and a happy new year! jan