Another nail in the coffin of the petrodollar system.
Once nations don't need to hold/use dollars to purchase oil its game over. The petrodollar system is what replaced the Bretton Woods system in the 1970s as the main impetus for the dollars role as the worlds reserve currency and all the benefits that entails.
The main pillar of the petrodollar system is and always has been the Saudis.
I really don't think the dollar will collapse as expected until the petrodollar system collapses and Iran trading oil for gold is a huge step. The toppling of the hous of saud would be another fateful event....wouldn't want to be in dollars when that happens!
http://blogs.ft.com/beyond-brics/201...#axzz20BjoTZDy
Nearly $1.4bn worth of gold was exported to Iran, accounting for 84 per cent of Turkey’s trade with the country.
With Tehran struggling to repatriate the hard currency it earns from crude oil exports – its main foreign currency earner and the economic lifeblood of the country - Iran has began accepting alternative means of payments – including gold, renminbi and rupees, for oil.
Turkey’s gold exports to Iran are part of the picture. As TurkStat itself noted, the gold exports were for “non-monetary purpose exportation”. Translation: they were sent in place of dollars for oil.
“Iran is very keen to increase the share of gold in its total reserves,” says Gokhan Aksu, vice chairman of Istanbul Gold Refinery, one of Turkey’s biggest gold firms. “You can always transfer gold into cash without losing value.”
According to Ugur Gurses, an economic and financial columnist for the Turkish daily Radikal, Turkey exported 58 tonnes of gold to Iran between March and May this year alone.
“I saw the surge back in March, when gold exports increased by 36 times compared to March of 2011,” Gurses told beyondbrics. “I waited to see if the trend would evolve. Effectively, Iran converted $3bn of its reserves into gold through financial operations with Turkey, bypassing sanctions.”
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