China's Shift To Euros

Forums: Business And Technology
Email this Topic • Print this Page

[quote]China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moves to diversify its foreign reserves away from U.S. dollars.[/quote]

This is big news. China is moving away from the "Private" Rothschild Fed notes and maybe they know something we dont. -michael1

Tue, 27 Mar 2007 16:33:00
http://www.presstv.ir/detail_iran.aspx?id=3997&sectionid =351020103

China's state-run Zhuhai Zhenrong Corp, the biggest buyer of Iranian crude worldwide, began paying for its oil in euros late last year as Tehran moves to diversify its foreign reserves away from U.S. dollars.

The Chinese firm, which buys more than a tenth of exports from the world's fourth-largest crude producer, has changed the payment currency for the bulk of its roughly 240,000 barrels per day (bpd) contract, Reuters reported Beijing-based sources as saying.

Meanwhile, China's Sinopec Corp., Asia's top refiner but a minor lifter of Iranian oil, is still paying in U.S. dollars, said a Sinopec trader.

Japanese refiners who buy about 500,000 bpd of Iranian crude, nearly a quarter of Iran's 2.2 million-bpd shipments, continue to pay in dollars but are willing to shift to yen if asked, industry sources and officials said separately.

"We are looking at it so that we can switch the currencies any time, but we have not gotten any official requests from the National Iranian Oil Company (NIOC). We are doing the transactions in dollars (now)," an on official with Japan's top hrefiner Nippon Oil Corp. which is one of Iranian crude's buyers has announced.

NIOC head of international affairs Hojjatollah Ghanimifard has said that around 60 percent of its oil income was in non-dollar currencies as almost all of Iran's European clients and some of its Asian customers had agreed to make non-dollar payments.

Iran's shift of currency, being watched closely by foreign exchange traders, comes amid an extended row between Tehran and Washington over Iran's nuclear program. end

Topic Stats
Top Replies
Link to this Topic

Type: Discussion • Score: 1 • Views: 724 • Replies: 6

No top replies

Interesting. But this is just the start in my opinion.

0 Replies

China has a huge reserve of dollars, about a trillion of them, they have to find a way of using Euros while not letting the dollar get de-valued. Fun, huh?

Joe(Iran only accepts Euros)Nation

0 Replies

I'm thinking that the sell-off started a couple of months ago, Joe Nation.

It's a hedgy platform, and hard to put the finger on, but the sell-off of greenbacks is a trickle equation.

Like you said, the Chinese gov does not want to devalue a trillion dollars that they are holding. ( I thought it was closer to the 600 billion mark)

0 Replies

Heard a trillion night before last on NPR's Marketplace and here's the BBC from late year LINK

snip

Quote:

China's economic growth is highly dependent on exports and investment, with relatively little coming from domestic consumption.

So the Chinese government wants to keep the value of its currency, the yuan, fixed at a rate tied to the US dollar (with a 3% variation allowed).

This helps boost foreign investment but makes it more difficult to control inflation.

In the long term, China wants to switch the emphasis in its economy to domestic demand.

But that will take time - and in the meanwhile the currency reserves could double to reach $2 trillion in a few more years.

So they have to siphon off the dollars faster (without losing value) to avoid ending up with TWO trillion of the things.

Joe(Hey, they could spend some on reducing the pollution they are producing...)Nation

0 Replies

Joe Nation wrote:

]China's economic growth is highly dependent on exports and investment, with relatively little coming from domestic consumption.

So the Chinese government wants to keep the value of its currency, the yuan, fixed at a rate tied to the US dollar (with a 3% variation allowed).

This helps boost foreign investment but makes it more difficult to control inflation.

In the long term, China wants to switch the emphasis in its economy to domestic demand.

But that will take time - and in the meanwhile the currency reserves could double to reach $2 trillion in a few more years.

So they have to siphon off the dollars faster (without losing value) to avoid ending up with TWO trillion of the things.

Joe(Hey, they could spend some on reducing the pollution they are producing...)Nation

It's a bit mind-numbing to consider the market share we are discusing, but in reality, they are holding three out of four aces.

How would one gov attempt to offload 2 trillion US dollars without trying to cause a stir? Shocked

0 Replies

Saddam started only accepting Euros and within a couple of months we bombed his country into oblivion. The US doesn't take this very lightly. (rephrase: the Rothschild private feds bank doesn't take it lightly)

0 Replies

China's Shift To Euros

Related Topics

Quick Links

My Account

able2know