The End of Dollar Supremacy

Iran announced yesterday ordering the central bank to direct foreign transactions and transform the state's dollar-denominated assets held abroad to the single European currency instead of the U.S. currency. "The government has ordered the central bank to replace the dollar with the Euro to limit the problems of the executive organs in commercial transactions," government spokesman Gholam Hossein Elham told reporters.

"Some banks abroad are also willing to go Euro in dealing with us and there is no problem if some others want to do business in other exchanges based on their preference," said governor of the Central Bank of Iran (CBI), adding that the country's FRF stands at $ 10 billion, indicating a 35 percent growth over last year.

It has been said that he who holds the gold makes the rules.

Will other oil producing countries in the Middle East, members of The Organization of Petroleum Exporting Countries (OPEC), follow the suit?

A switch by OPEC members from the U.S. currency to the Euro could enhance the value of the Euro, the new official currency of the European Union (EU) which first came into existence on Jan. 1, 1999, further, ending the U.D. Dollar supremacy.

Kavkaz Center