Iran's oil exchange to trade oil for euros, not dollars

On the 5^th of May Iran registered its Oil Exchange, which will become the fifth Stock Exchange of its kind in the world. Other exchanges operate in New York, London, Singapore and Tokyo. Which exact companies will be allowed to trade at this Exchange is, like the official opening, still unknown. Yet the Iranian Exchange will be unique, as all trading will be conducted in Euros. On the already functioning Stock Exchanges business is conducted in dollars and, because of this, the specific term ‘petrodollars’ came into use. If the Iranian Petroleum Exchange allows the major oil companies to trade on its floor then the dollar seriously risks losing its position in the world market. This is a possibility that many experts already consider very plausible.

	Iran and oil
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Will the situation change on the World Oil Market? How will the opening of the Oil Exchange affect the rate of the dollar?

The present happenings in the Oil Market are already well known – the price of oil will continue to grow. But what changes will occur with the creation of the new Exchange? From now on will all the oil have to be purchased from the Iranian Exchange? With the opening of the new exchange neither the price of milk will rise nor will it decrease in quantity. This is a fully political gesture on the part of Iran.

As concerns the introduction of trading with the euro/">euro, this corresponds perfectly with the present direction of the world economy: the dollar falls and the euro gets stronger.

If we compare the presumed turnover of the Iranian Exchange and the full turnover of the economy of the USA we will see that the same mistakes are still being made. The dollar will continue to fall while the price continues to grow on oil. The growth will continue as long as American pursues its present political agenda. The USA of course has its dividends - to raise the competitiveness of its own goods.

Iran declares that with the opening of the Exchange it hopes to reduce the influence of America on its own economy and the economy of the region. But can it achieve this?

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