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If the petrodollar is irrelevant, why is Iran insisting that anything transiting the straight of Hormuz be bought using the Chinese Yen?
by philistine 7mo ago
If the petrodollar is irrelevant, why is Iran insisting that anything transiting the straight of Hormuz be bought using the Chinese Yen?
- linhns 7mo agoYuan. Not Yen. Iran shouldn’t be insisting anything.
- philistine 7mo agoBut why is Iran insisting the Chinese Yuan be used? Because they're idiots? Because Petrodollars make our global economy work, and Iran wants their partner China to be in control! If Americans lose sight of their need to maintain their role as *THE* lingua franca of international trade, then all hell is lost. The US cannot afford its military without massive consequences if it can't raise extraordinarily cheap debt through purchases of oil in US dollars immediately turned around to buy US debt to maintain that money's value.
- kortilla 7mo agoBecause China has a controlled currency and can lock flows back out. Please do enough research to at least get the right currency before engaging in these discussions. The forex markets are so extremely liquid and deep that trading in USD is no different than trading in any other free floating high volume currency. Petrodollar might have mattered in 1975 when you couldn’t swap 100 million USD for 100 million euros in 2 seconds without even moving the market.