Iran planning to stop using U.S. dollar to price oil

Kuala Lumpur, NU Online
Iran is planning to stop using the U.S. dollar to price oil, with less than half of its oil income now paid in the U.S. currency, Iran's central bank governor said.

"That's the plan for the future, we are working on that," Governor Ebrahim Sheibany said in an interview with Zawya Dow Jones News Service late Tuesday when asked if Iran was planning to stop pricing oil in dollars. He was speaking on the sidelines of an Islamic finance forum in Kuala Lumpur, Malaysia'slargest city.<>

In global markets, oil is priced in U.S. dollars per barrel.

"More than 50 percent of Iran's oil income is paid in other currencies. We are reducing the dollar share and asking clients to pay in other currencies," Sheibany said.

Sheibany said that almost all of Iran's European clients and some of its Asian customers have accepted making payments in non-dollar currencies.

"Even if we get dollars, we directly convert it to other currencies. Japanese don't mind paying us in yen, for example," he said as quoted by The Associated Press.

Sheibany noted that Iran has earned more than US$45 billion from oil sales during the current fiscal year, which ended March 20.

Washington is leading efforts to isolate Iran over what it claims is Tehran's bid to build atomic bombs. The United States has imposed sanctions on two big state banks and has urged international firms to avoid doing business with Iran. (dar)