Facing Sanctions, Iran To Sideline Dollar by Using Gold in Trade
by Alex Newman
In the face
sanctions imposed by the European Union and the U.S. government,
supposedly related to the Iranian nuclear program, officials in
Iran announced that the nation would accept gold and currencies
other than the dollar in international trade. China, Russia, India,
and other major economies have continued to do business with the
Islamic Republic despite the growing Western pressure.
trade transactions with other countries, Iran does not limit itself
to the U.S. dollar, and the country can pay using its own currency,"
Iranian central bank governor Mahmoud Bahmani was quoted
as saying in state-controlled media. "If a country should so
choose, it can pay in gold and we would accept that without any
the move, officially announced Tuesday, represents another serious
attack on the status of the already-embattled American dollar. While
it currently serves as the global reserve currency due mostly
to its use in paying for oil on international markets the
Federal Reserve-issued debt-based currency is facing increasing
challenges on several fronts.
of the world's nations, which have privately
owned monetary authorities, such as the Fed, that are controlled
by banking cartels, Iran has a state-owned
central bank. More than a few
analysts have suggested
the Islamic Republic's relatively unique monetary system is actually
one of the reasons Western belligerence toward the nation is growing
Prior to the
NATO-backed overthrow of strongman Moammar Gadhafi, Libya also had
a state-owned central bank. The nation had massive reserves and
no foreign debt before "regime change" arrived. But in
the early days of the Western-backed rebellion, "rebels"
a new central bank to replace Libya's existing monetary authority
sparking serious suspicions among analysts.
government was sitting on huge stockpiles of gold bullion, had been
seeking partners to
create a gold-backed currency for the oil market that would
have marginalized the U.S. dollar. Before the plan could come to
fruition, however, Libya was aggressively bombed by international
forces. NATO's rebels on the ground known
terror leaders, former Gadhafi officials, Western special forces,
and assorted Islamic extremists
finished the job and executed the long-serving dictator.
Saddam Hussein had also threatened to start selling oil in currencies
other than the U.S. dollar. But that scheme was put on ice as well
when U.S.-led military forces invaded and occupied the nation in
2003 first under the guise of "weapons of mass destruction"
and supposed links to terror, and later for the supposed purpose
of "spreading democracy."
have similarly accused the Iranian dictatorship of secretly developing
nuclear weapons. Iranian officials claim its atomic program is for
peaceful purposes, and while some analysts disagree, even the U.S.
intelligence community has failed to find any evidence of clandestine
weapons development in Iran.
lack of evidence, however, Western governments have become increasingly
belligerent, imposing a wide range of sanctions on Iran, its central
bank, and even foreign institutions that do business with it. The
value of Iran's fiat currency has plunged in recent months, even
against other declining currencies. But with much of the world refusing
to go along with sanctions, it is unclear how effective the efforts
to punish the nation have been.
has been spun in recent weeks to indicate that as a result of collapsing
trade, Iran's economy is in shambles and that the financial
embargo hoisted upon the country by the insolvent, pardon, developed
world is working,"
noted the financial analysis site ZeroHedge. "We had a
totally different perspective on things."
to ZeroHedge's take on the situation, the Iranian regime is actually
plotting to put the final nail in the dollar's coffin. "We
said that Iran, with the complicity of major trading partners
like China, India and Russia is preparing to phase out the petrodollar:
a move which would be impossible if key bilateral trade partners
would not agree to it," it noted.
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© 2012 The New American