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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: Webster Groves who wrote (66670)7/16/2007 1:39:17 AM
From: mishedlo  Read Replies (2) of 116555
 
You may feel one can interchangeably trade contracts and currencies electronically, and so the difference is minimal, but the difference is large if you are Iran and no European bank will take your dollars.

The difference is essentially meaningless.
Everyone said oil in Euros was a big thing. Now we find out that Iran was accepting Yen for oil all along. They Iran wont take dollars.

If Iran wasn't holding dollars in the first place then there is no net change.

But to the extent that countries are attempting to diversify out of dollars, that is another matter and that does pressure the dollar. The pricing unit is a mirage.

Finally... if Europe won't take Iran dollars it is likely they will not take Yen or Euros from Iran either. There either will be an embargo across the board or it is 100% useless.

Mish
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