Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says

[mitth]

Good decision Iran and Russia......
this decision what effect on USA or benefit of other country.

 

[ephone]

So Iran people prefer your own Rial over U.S. $???

all I can say is LOL.

 

[longbrained]

So Iran people prefer your own Rial over U.S. $???

What about in China? How they get paid for their exports?

 

[ephone]

You are a simpleton who can not understand about economy. Currency is not about its worth. It is about a medium which enables trade. If a country keeps a strong currency just because to keep it strong, that country's economy is soon going to collapse, for the simple reason that exports will become more expensive and uncompetitive. Currency has to reflect the realities of trade. Dollar or Euro do not reflect those realities, neither does Yuan. Dollar's value is alot lower and Yuan's alot higher but they are kept artificially high and low. That is why American economy is in shambles and China is overheating with growth. Iranian Rial is good enough for trade with Iran. To keep a reserve the best is gold and the next best is a combination of Yen, Yuan, dollar, Euro, Swiss Franc, Canadian dollar and Australian dollar. No one currency is safe, only gold is. Dollar by itself is just a worthless paper and can fail at anytime much like Ruble and Mark had failed before it. Iran actually does not need to keep any holdings since it is sitting on top of a very expensive and needed commodity which itself is a kind of holding and reserve. That is gas and oil. Read the the above article I had referred you to inorder to understand.

Currency, "a medium which enables trade"

That is exactly what a currency should do. I do not understand economy? I hold a Dr. level degree in such matter.

The problem is that your Rial won't enable trade since almost no other trading partners want that. They want $, europe $, JP Y, canadian $, australian $ or even Chinese RMB.

However, where on earth can those Rial be used anywhere else for trade/exchange???

BTW, why don't you tell me currently which "smart" country in the world uses your Rial as reserve besides iran???

---------- Post added at 11:50 AM ---------- Previous post was at 11:49 AM ----------

We get paid by $, or Euros.

What about in China? How they get paid for their exports?

 

[Arian]

So Iran people prefer your own Rial over U.S. $???

Iranian people trade in Tomans in their country. (P.S: 1 Toman equals 10 Rials)

 

[ephone]

Anyway, most iranians prefer your own currency to U.S. $???

That is not what I have heard recently.

Iranian people trade in Tomans in their country. (P.S: 1 Toman equals 10 Rials)

 

[somebozo]

After China, Russia, Japan and India, Now Iran also follows suit..Dollars is being increasingly dumped by countries soon it will be cheaper to wipe with a dollar than buy toilet paper!

 

[Veritas]

Chinese import decision has nothing to do with US pressure, it is more about payment issues.

which is in turn due to sanction on Iranian Central Bank and Oil trade.

 

[ephone]

That is a joke, right? What does PK central bank hold now?

After China, Russia, Japan and India, Now Iran also follows suit..Dollars is being increasingly dumped by countries soon it will be cheaper to wipe with a dollar than buy toilet paper!

 

[Arian]

Anyway, most iranians prefer your own currency to U.S. $???

That is not what I have heard recently.

If they want to save money, well, no. They prefer gold and US dollar. but the guy claimed that US dollar was more popular than Iranian Rial in local market which is wrong. Also because the price of dollar is changing significantly almost every week not everyone wants to take the risk to buy or sell dollars now.

 

[regular]

It is not about currency conversion at all. First, if such payment is made, since $ is most demand currency, $ is used. Each country's central bank has certain amount of $ holding to make payment for international trade.

The fundamental reason for U.S.S.R.'s collapse is that its central bank has no $ left in its final days and all international trades want $ as payment. So U.S.S.R. could not afford to buy anything in the end.

The problem between U.S., Europe and Iran is that, U.S. and Europe join together to put a sanction on Iran and all other country's central banks who have business with Iran. Basically, it is you or me mutual selection. No country's central bank can afford not to have business relationship with U.S. and Europe.

In this way, U.S. and Europe basically cut off Iran's export.



---------- Post added at 11:24 AM ---------- Previous post was at 11:23 AM ----------



So you think holding Iran's Rial is a safer bet comparing with holding $??? You must be either paranoid or simply joking.

Yes! If U want Iranian oil the Iranian Rials will be worthy.....

 

[fd24]

After China, Russia, Japan and India, Now Iran also follows suit..Dollars is being increasingly dumped by countries soon it will be cheaper to wipe with a dollar than buy toilet paper!

If you think the USA is treading on dodgy water then imagine the Saudi or Chinese putting their foot down and started to play hardball and not accept the dollar or even share its main transfer currency with another one? I promise you the USA would crash overnight. The Saudi in particular seem to be oblivious to the potential power they could have over their Amreeekan buddies

 

[lem34]

If you think the USA is treading on dodgy water then imagine the Saudi or Chinese putting their foot down and started to play hardball and not accept the dollar or even share its main transfer currency with another one? I promise you the USA would crash overnight. The Saudi in particular seem to be oblivious to the potential power they could have over their Amreeekan buddies

Saudis know exactly what they are doing they are thick as thieves with American

 

[ephone]

From what I have heard and read, it seems that your own rial is way more volatile than the U.S. $, not the other around as what you have described.

If they want to save money, well, no. They prefer gold and US dollar. but the guy claimed that US dollar was more popular than Iranian Rial in local market which is wrong. Also because the price of dollar is changing significantly almost every week not everyone wants to take the risk to buy or sell dollars now.

 

[ephone]

Yes! If U want Iranian oil the Iranian Rials will be worthy.....

I think Iran central bank wants $ more than rial as well.