Iran Military Forum

Tehran, Beijing to discuss ditching dollar
TEHRAN, Feb. 8 (MNA) – Iran and China will start talks in the coming days to substitute the dollar as the currency used to bilaterally trade oil, Mehr news agency reported on Wednesday.

The discussions will take place amid a growing number obstacles preventing China from paying for crude imports using the petro-dollar, including the U.S. mandate to punish companies doing business with Iran.

China's crude-oil imports from Iran last year were up 30 percent from 2010, to 27.76 million metric tons, according to China's General Administration of Customs – around 557,000 barrels a day.

Beijing has steadfastly defended its relationship with Iran, the No. 3 supplier of crude to its energy-hungry economy, as the U.S. and Europe try to increase pressure on Iran over its nuclear activities.

The European Union formally imposed an oil embargo on Iran and agreed to a freeze on the assets of the Central Bank of Iran on January 23, but existing contracts will be honored until July 1.

In the first half of 2011, China was the largest importer of Iranian crude, followed by Japan, India, South Korea and Italy, according to data from the U.S. Energy Department.

China is the top buyer of Iranian oil, accounting for around 20 percent of its total exports, but since January it has cut purchases by around 285,000 barrels per day (bpd), or just over half of the total daily amount it imported in 2011.

http://www.mehrnews.com/en/newsdetail.aspx?NewsID=1529578

WoW maydayfire ! I wasnt expecting that kind of language from you ! :S

It seems that I have heard of Iran and China dumping the dollar before.

For example:
according to the FT, China has decided to commence an barter system in which Iranian oil is exchanged directly for Chinese exports.
http://www.zerohedge.com/news/china-and-iran-bypass-dollar-plan-oil-barter-system-and-deeper-dive-iranian-oil-bourse
07/24/2011

How many times have we heard this before?

A barter system is a very logical solution to the current situation as it circumvents the international bankers and will rid of reliance on the value of the dollar.

This is basically what Germany did post WW1 when its own economy was saddled with massive debts and sanctions after being cornered and forced to pay reparations by the rest of Europe. It helped their economy ascend from the Great Depression and become among the strongest in their neighborhood again but won them a lot of scorn of the international bankers who then wanted to support another war against Germany, as they were deeply alarmed that the Germans found a way around their debt slavery.