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| Syria-Lebanon-Iran | |
| Iran demands Japan pay for oil in Yen | |
| 2007-07-15 | |
| Iran asked Japanese refiners to switch to the yen to pay for all crude oil purchases, after Iran's central bank said it is reducing holdings of the US dollar. The yen rose on speculation for an increase in demand for the currency, the result of Japan's annual 1.24 trln yen ($10.1 bln) of oil imports from Iran. Central bankers in Venezuela, Indonesia and the United Arab Emirates have said they will invest less of their reserves in dollar assets because of the weakening currency. "What else can Japan do but to accept the request, once the oil producer sent its wish?'' said Hirofumi Kawachi, an analyst at Mizuho Investors Securities Co. in Tokyo. "The tensions between the US and Iran are escalating, and it is Iran's measure to hedge risk.'' Iran is cutting its US dollar reserves to less than 20% of total foreign currency holdings, and will buy more euros and yen as tensions with the US increase, Central Bank Governor Ebrahim Sheibany said on March 27.
Iran asked the refiners to use the yen exchange rate quoted at the Bank of Tokyo Mitsubishi UFJ on the date oil cargoes are loaded. The use of yen-based letters of credit for oil "has finally been approved'' by the Iranian central bank and the NIOC, according to the letter, titled "New payment mechanism for Iranian Crude Oil Cargoes.'' Japan imported 1.59 mln kiloliters of Iranian crude oil in May, the least since June 2006, according to government data. Only Saudi Arabia and the United Arab Emirates are larger oil suppliers to Japan than Iran. | |
| Posted by:lotp |
| #4 Yes GP0723! We have a lot of coal. I would like to see the hydrogen fuel cell auto pushed harder. The infrastructure is not developed for fueling. California has some activity in this area. We have a lot of inertia to change built into our system--too many vested interests. My wife and I were having a picnic the other day at one of our TVA dams in the region the other day. I noticed the dam was built around completed in 1936. Approximately 3 years were required to build it. I hate to think how long would be required today to build it--if it could even be built. I took part in designing aspects of the Clinch River Breeder reactor in the 1980s. The effort took several years only to be scuttled by Congress. The breeder reactor provided a way to utilize radioactive wastes. So many good engineering design efforts become political footballs. |
| Posted by: JohnQC 2007-07-15 15:26 |
| #3 This idea follows on the heels of the planned opening of the Iranian Oil Bourse and Russia's Energy Stock Exchange, all intended as subtle attacks against the U.S. dollar. To strengthen the dollar long term and to give ourselves greater leverage against hostile foreign government actions we should: 1. Eliminate deficits to eat into the national debt 2. Triple our investment in alternative energy research 3. Develop our domestic sources: nuclear, biofuels, hydroelectric, solar, wind power, and allow ANWR drilling |
| Posted by: Grumenk Philalzabod0723 2007-07-15 14:48 |
| #2 Yen is strong right now against the dollar. |
| Posted by: JohnQC 2007-07-15 10:40 |
| #1 Sounds like the quiet Gnomes over in Treasury are causing some real pain. Go Gnomes!! "it's the quiet little buggers you have to watch out for." |
| Posted by: N Guard 2007-07-15 09:23 |