• 8 hours Is A Global Currency Necessary?
  • 24 hours America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 1 day Trump Wants Another $2 Trillion Economic Intervention
  • 2 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
  • 2 days Priceless Van Gogh "Spring Garden" Painting Stolen
  • 2 days Oil Falls To $20 For First Time In Nearly Two Decades
  • 2 days COVID-19 Could Be The End Of U.S. Coal
  • 3 days How Much Does Your Social Security Number Cost? $4 On The Dark Web
  • 4 days Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 5 days How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 5 days America’s Shortage Of This Metal Keeps Trump Up At Night
  • 6 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 6 days U.S. Auto Sales Fall By 75%
  • 7 days Violating Quarantine? Big Brother Is Watching
  • 7 days Does Gold Still Have Some Room To Run?
  • 7 days Major Acquisition Gives The World’s First Green Ride-Share Another Edge
  • 8 days U.S. Pushes For Digital Currency For Immediate Stimulus
  • 8 days The Impossible Challenges Created By Growing Population
  • 8 days Gold Skyrockets After Fed Pledges "Unlimited" Cash To Boost Economy
  • 9 days World’s Richest Lose $1 Trillion In Stock Market Rout
U.S. Shale Faces Existential Threat As Oil Price War Rages On

U.S. Shale Faces Existential Threat As Oil Price War Rages On

COVID-19’s wave of infections has…

COVID-19 Could Be The End Of U.S. Coal

COVID-19 Could Be The End Of U.S. Coal

The fast-spreading coronavirus pandemic may…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Commodities
  3. Energy

Russia Joins China In Fight Against The Petrodollar

Russia

Russia is considering replacing the U.S. dollar in crude oil payments on deals with Turkey and Iran, Energy Minister Alexander Novak said as quoted by RT.

According to Novak, “There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties. This concerns both Turkey and Iran – we are considering an option of payment in national currencies with them. This requires certain adjustments in the financial, economic and banking sectors.”

Iran, under threat of returning U.S. sanctions, two months ago decided to ditch the greenback as a currency in its imports. A directive from the Ministry of Industry, Mine and Trade ordered traders to stop placing import orders in U.S. dollars. The argument in defense of the move was that Iran has no access to dollar transactions because of the sanctions, and removing it as an import payment currency would make life easier all around.

The country has emerged as a strong ally of Russia, especially as the two share the pain of sanctions. Last November, RT recalls, Ayatollah Ali Khamenei urged President Vladimir Putin to join him in quitting the dollar as a transaction currency and replacing it instead with national currencies to “isolate the Americans.”

Iran’s quest against the dollar also last year resulted in a bilateral deal between the central banks of Iran and Turkey to trade in national currencies. Russia is currently in negotiations with Tehran to do the same, although there are skeptics who believe switching from the greenback to national currencies is easier said than done.

Also, the advent of cryptocurrencies could facilitate the move away from the dollar as an international oil trade settlement currency, one analyst said recently. In a December 2017 note, Stephen Brennock from PVM Oil Associates said cryptos could help commodity-producing countries to switch from dollar to cryptocurrencies to reduce their dependence on the greenback. At the same time, he said, it would curb their exposure to dollar movement risks and the effects of sanctions, which typically feature cutting off access of the target country to international funding.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment