It's the Bourse of course
Tomorrow may be the big day for the Iranian Bourse. Here is one story from the World next Week:
The long-delayed Iranian Oil Bourse (IOB) will start operations on Sunday, the official Iranian news agency IRNA said, citing the country's oil minister.
The exchange, based on the Gulf island of Kish, a free trade zone, opens with a whimper, rather than the promised roar. The IOB has long been touted by Iranian news agencies as a petrobourse for petroleum, petrochemicals and gas in various non-dollar currencies, primarily the euro, which would have a negative impact on the US economy and financial system. Yet trading will start on the bourse with two or three petrochemical products and Iranian rials will be used for all transactions.
Iran, the second-largest producer in OPEC, was originally expected to start its own oil-trading market in 2005. Yet the exchange has missed at least three announced opening dates and was further delayed by the complete elimination of internet connectivity to the country, which sparked conspiracy theories over who would have felt threatened enough to cut the cables. The success of the bourse depends on unlikely cooperation with other OPEC members as well as a much-needed consensus from Gulf States. "
And there is this from Political Lore
"The fear in the United States in some economic circles is that the opening of this bourse could lead to a further decline of the U.S. dollar. The U.S. dollar is currently the international currency in the trading of crude oil, with all oil exchanges being located in the Western world, but the Iranian oil bourse would seek to change this fact.
As long as the U.S. dollar is the only international currency that can be used in purchasing oil the dollar will remain relatively stable because it will be in demand to purchase oil, if for no other reason. Therefore, countries such as Saudi Arabia are forced to accept the dollar for the sale of their crude and countries such as China and India are forced to keep the dollar on hand to purchase oil.
Since the dollar has now fallen below the value of the Euro the opening of the Iranian Oil Bourse would remove one of the last remaining incentives for nations to hold onto the United States dollar. Some even go as far as to speculate this looming opening of the oil bourse being a reason for the harsh rhetoric Washington has used in the recent past towards Iran."
Others, such as William Clark, feel it is definitely the reason Iran is in the US's sights:
"The Iranians are about to commit an "offense" far greater than Saddam Hussein's conversion to the euro of Iraq’s oil exports in the fall of 2000. Numerous articles have revealed Pentagon planning for operations against Iran as early as 2005. While the publicly stated reasons will be over Iran's nuclear ambitions, there are unspoken macroeconomic drivers explaining the Real Reasons regarding the 2nd stage of petrodollar warfare - Iran's upcoming euro-based oil Bourse."
When 3 (now five) separate internet cables were cut in the last weeks severing much of the connectivity to the mideast and Africa, I wondered if there was a connection to something other than rogue anchors.
It's the Bourse of course.
The long-delayed Iranian Oil Bourse (IOB) will start operations on Sunday, the official Iranian news agency IRNA said, citing the country's oil minister.
The exchange, based on the Gulf island of Kish, a free trade zone, opens with a whimper, rather than the promised roar. The IOB has long been touted by Iranian news agencies as a petrobourse for petroleum, petrochemicals and gas in various non-dollar currencies, primarily the euro, which would have a negative impact on the US economy and financial system. Yet trading will start on the bourse with two or three petrochemical products and Iranian rials will be used for all transactions.
Iran, the second-largest producer in OPEC, was originally expected to start its own oil-trading market in 2005. Yet the exchange has missed at least three announced opening dates and was further delayed by the complete elimination of internet connectivity to the country, which sparked conspiracy theories over who would have felt threatened enough to cut the cables. The success of the bourse depends on unlikely cooperation with other OPEC members as well as a much-needed consensus from Gulf States. "
And there is this from Political Lore
"The fear in the United States in some economic circles is that the opening of this bourse could lead to a further decline of the U.S. dollar. The U.S. dollar is currently the international currency in the trading of crude oil, with all oil exchanges being located in the Western world, but the Iranian oil bourse would seek to change this fact.
As long as the U.S. dollar is the only international currency that can be used in purchasing oil the dollar will remain relatively stable because it will be in demand to purchase oil, if for no other reason. Therefore, countries such as Saudi Arabia are forced to accept the dollar for the sale of their crude and countries such as China and India are forced to keep the dollar on hand to purchase oil.
Since the dollar has now fallen below the value of the Euro the opening of the Iranian Oil Bourse would remove one of the last remaining incentives for nations to hold onto the United States dollar. Some even go as far as to speculate this looming opening of the oil bourse being a reason for the harsh rhetoric Washington has used in the recent past towards Iran."
Others, such as William Clark, feel it is definitely the reason Iran is in the US's sights:
"The Iranians are about to commit an "offense" far greater than Saddam Hussein's conversion to the euro of Iraq’s oil exports in the fall of 2000. Numerous articles have revealed Pentagon planning for operations against Iran as early as 2005. While the publicly stated reasons will be over Iran's nuclear ambitions, there are unspoken macroeconomic drivers explaining the Real Reasons regarding the 2nd stage of petrodollar warfare - Iran's upcoming euro-based oil Bourse."
When 3 (now five) separate internet cables were cut in the last weeks severing much of the connectivity to the mideast and Africa, I wondered if there was a connection to something other than rogue anchors.
It's the Bourse of course.
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Labels: the world
posted by oZ @ 5:16 PM
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