Tuesday, February 28, 2012

Iran Just Asked for Libya Treatment: Publicly States Will Accept Gold as Payment for Oil

Apparently not learning from the situation in Libya 12 months ago, Iran today publicly declared it will gladly accept gold as payment for its oil. This whole situation is playing out something like this:
US: 'We won't purchase anymore of your oil Mr. Ahmadinejad.  Oh, and your bank accounts are frozen.'
Iran: 'Ok, we'll sell it for gold.  We prefer phyzz over your paper anyways.'

(Reuters) - Iran will take payment from its trading partners in gold instead of dollars, the Iranian
state news agency IRNA quoted the central bank governor as saying on Tuesday.

Iranian financial institutions have been hit by sanctions imposed by the United States and the European Union in an effort to force Tehran to halt its nuclear programme.
 Significant difficulties in making dollar payments to Iranian banks have forced Iran's trading partners to look for alternative ways to settle transactions, including direct barter deals.
 "In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency," central bank governor Mahmoud Bahmani was quoted as saying. "If a country should so choose, it can pay in gold and we would accept that without any reservation."
 The sanctions include a phased ban on importing oil from Iran, which EU member states are to implement by July.
 China and India, two of the largest consumers of Iranian oil, have said they will continue imports, but Japan and Korea have announced cuts to quotas following pressure from the United States. As a result the value of Iran's rial has plummeted, pushing the price of goods sharply higher across the country.
Read more:

and from PressTV:
Governor of the Central Bank of Iran Mahmoud Bahmani says the country can trade in currencies other than the American dollar in its foreign transactions.
“Iran does not just work with the dollar in trade transactions and every country can pay in its own currency,” said Mahmoud Bahmani on Tuesday.
Bahmani added that Tehran could receive gold in its transactions instead of currency transfers.
In case a country is willing to pay for the price of its imports from Iran in gold, there is no problem in this respect, he noted.