Tags: Iran | Gold | Dollars | Oil

Iran Says It Will Take Gold Over Dollars for Oil

Thursday, 01 March 2012 08:17 AM

Iran will accept gold and other currencies in place of dollars in an effort to end-run financial sanctions put into place by the United States and the European Union. Besides blocking oil sales, the two have made it harder for buyers of Iranian oil to use dollars to buy, despite oil being priced internationally in dollars.

"In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency," Iran central bank governor Mahmoud Bahmani told Iran’s state-run news agency.

"If a country should so choose, it can pay in gold and we would accept that without any reservation."

The EU has blocked its members and companies based in those countries from buying Iranian oil starting July 1. Those purchases account for 20 percent of the country’s exports. The United States already has banned Iranian oil purchases.

China and India are the largest buyers of Iranian oil. Japan is close to cutting off its purchase of oil from the country, reports the Financial Times, in an effort to avoid U.S. sanctions against Japanese banks in the United States.

Gas prices have risen by 47 cents over two months, according to data from AAA, largely on the rise in oil prices driven by tensions with Iran over its nuclear ambitions.

The current regular gas price averages $3.68 a gallon, reports consumer site GasBuddy.com, up from $3.39 just one month ago. However, prices in California already have topped $4.20 a gallon.

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Thursday, 01 March 2012 08:17 AM
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