Reports this week indicate Iran will only accept payments for crude from India in Euros. During sanctions Iran had previously allowed India to pay for half of its crude in Rupees with the other half on credit. This isn't a huge surprise given the large amount of business Iran did in Europe, but its another crack in the petrodollar system.
To my knowledge Reuters was the first to report the story as part of a tiny cable related to Iran no loner providing free shipping of crude to India, but this is the only copy of the story I could find publicly online.
Also, since I know most of you follow the dollar closely - you may or may not be aware but international shipping is transacted almost entirely in dollars. For point of reference, there are ~$1T of assets on the water., exclusive of things like offshore oil platforms. Its a huge market.
Crude shipping is a good bellwether of international dollar demand but there are many sectors. There isn't much noise about trade moving away from dollars but will report as I hear it.
Saturday, April 16, 2016
Petrodollar Takes Another Hit
From an insider email discussion group that I belong to, an analyst at a bankster firm writes:
at 11:17:00 AM