The Decline of the Petrodollar

-- You know, it could turn out to be a global melee this summer; riots, wars, currency wars, trade wars, civil wars, blackouts. The amount of pent up emotion on this planet is staggering. What am I doing about it? I'm meditating and praying twice as much and staying out of the way. -- MCR

Iran accepts Yuan for Oil trade with China, threatens US Dollar

Iran is reportedly accepting Yuan as a settlement currency for its oil trade with China, posing a significant threat to the dominance of the US Dollar as the international trade currency, especially if other countries start to barter similar deal

Commodity Online,

8 May, 2012

As per the Financial Times, Iran uses the Yuan to purchase goods from China. Some of the trade is even in barter form. For eg; China's Zhuhai Zhenrong oil trading company provides services such as drilling to Iran in exchange of oil.

Increasing US sanctions have been straining Iran from its oil revenues as its major markets began to cut back oil imports from the country in a bid to comply with US requests. But the sanctions may boomerang back at the US with countries starting to use their respective currencies instead of the US Dollar for oil trades.

Earlier, India and Iran had agreed on a deal whereby India would pay about 40% of its oil imports in the for of Indian Rupee and Iran could use the currency to purchase goods and services from India.

And now with China joining India in a similar deal with Iran, it has to be seen if other countries over the world follow suit.