Dollar Rally – Iranian Central Bank Dumps Euros, Buys Dollars


Iran’s central bank began the first phase of the 45 billion-euro ($55 billion) sale of some of its reserves for dollars, the state-run Jaam-e-Jam newspaper reported, citing people it didn’t identify.

The bank is selling 15 billion euros in the first of three stages, which will be completed by Sept. 22, the newspaper reported on its website on May 31.

Iran will “substantially” decrease its oil sales in euros, the paper said. It informed Japan and other crude-oil customers of the change, Jaam-e-Jam said. The Persian Gulf country’s euro reserves are 55 percent of the total, and would be reduced to 20 to 25 percent after the sale is complete and after oil sales in euros have been reduced, the paper said.

Iran’s shift out of euros has been prompted by the single currency’s decline, said Jaam-e-Jam, which is owned by the state broadcaster. Other central banks, including those of the Persian Gulf states, also are selling their euro reserves, it said.

The euro was little changed against the dollar, rising 0.1 percent to $1.2241 at 12:45 p.m. in New York.

The euro made up 27.4 percent of global currency reserves at the end of 2009, according to the most recent data available from the International Monetary Fund. While that was down from 27.8 percent in September, it was up from 26.4 percent a year earlier.

Experts in Iran’s central bank have suggested the country buy gold because they forecast the precious metal’s price will increase, Jaam-e-Jam said.

Euro’s Decline

The euro has fallen 15 percent against the dollar this year, reaching a four-year low yesterday, amid concern the debt crisis that started in Greece will spread to other nations and dent economic growth. The slide forced European Union leaders to piece together an almost $1 trillion loan package last month as confidence in the euro’s status as an alternative reserve currency to the dollar faded.

Gold is up 11 percent this year and is headed for a 10th annual gain, the longest rally since at least 1920. The metal reached a record $1,249.40 an ounce on May 14 and traded at $1,223.05 an ounce in London today.

In essence, Iranian central bankers are jumping on the boat of the deflation trade

I still think that a healthy mix of gold, Dollars, and Treasurys is the right recipe to protect one’s wealth in these turbulent times.

http://www.economicsjunkie.com/dollar-rally-iranian-central-bank-du...

Views: 25

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Latest Activity

ron proul favorited dogitydog's discussion THE 'DEATH CHIP'
58 minutes ago
Diana favorited Raz Putin's discussion ActivistPost:"8 Historic Cases That Show the FBI and CIA Were Out of Control Long Before Russiagate"
1 hour ago
Old Denmark posted a status
3 hours ago
cheeki kea posted a photo
5 hours ago
cheeki kea commented on Doc Vega's blog post Australia PM adviser says climate change is 'UN-led ruse to establish new world order'
"A district council officer tried to make me remove a coal burner, and stop using 3 fireplaces at my bug out location in the deep south, but they bummed out when I refused the free grant from them for home insulation. I'm the only one who never…"
5 hours ago
cheeki kea posted a video

New Zealand PM Jacinda Ardern joins gay pride parade

Jacinda Ardern becomes New Zealand's first prime minister to walk in the country's gay pride parade. Ardern walked with a crowd of 25,000 in Auckland and use...
5 hours ago
cheeki kea commented on Maasanova's video
Thumbnail

SEX OFFENDER Participates in "Drag Queen Storytime" Due To No Background Check!

"The Govts Will zealously promote L.G.B.T.Q.I  as long as there are Kids out there with high levels of mental health and self harm issues, Their work Will go on ! They will say it to your face. ( there's no hope left, the madness will not…"
6 hours ago
cheeki kea favorited Maasanova's video
6 hours ago
Chris of the family Masters posted a discussion

Fat is My Friend

Commentary by Damien Downing, MBBS(OMNS Jan 17, 2018) Throughout 2017 I kept saying "This looks like the year that the whole fat-cholesterol-heart disease hypothesis falls apart." Well for once it looks like I was right. Today (I write on Jan 1st…See More
7 hours ago
Chris of the family Masters posted a video

200,000 Year Old Levitaion Technology - Michael Tellinger

Michael Tellinger shares a new video from his 2017 HIDDEN ORIGINS - USA & CANADA tour. This is the last hour of a 4 hour presentation in which he goes into t...
7 hours ago
Diana's video was featured
10 hours ago
Maasanova's 2 videos were featured
10 hours ago
Diana's 2 photos were featured
11 hours ago
Raz Putin favorited Marklar's Ghost's blog post New Study Claims Conspiracy Theorists More Likely to Become Criminals!
11 hours ago
Marklar's Ghost posted a blog post

New Study Claims Conspiracy Theorists More Likely to Become Criminals!

Aaron & Melissa DykesTruthstream MediaPublished on Mar 25, 2019Please help support us on Patreon, read our goals here:…See More
13 hours ago
Marklar's Ghost favorited James Roberts's blog post The Alt-Right Declares War on Trump for Betrayal on Immigration, Opposes Reelection
13 hours ago

Please remember this website is supported by your donations...

© 2019   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2015 - all rights reserved. unless otherwise noted