Japan using Yen rather than dollar to purchase oil

[Servant4light]

Iran and Japan have taken another step in making the dollar's dominance a thing of the past.

Japanese oil refiners Cosmo Oil Co. and Japan Energy Corp. have started paying for Iranian crude oil in yen instead of dollars, announced company spokesmen on October 9. Both companies are following in the footsteps of Nippon Oil Corp.-Japan's largest oil refiner-which made the same announcement in September.

http://english.pravda.ru/business/companies/17-10-2007/98974-reserve_currency-0

[JenGC]

Iran and Japan have taken another step in making the dollar's dominance a thing of the past.

Japanese oil refiners Cosmo Oil Co. and Japan Energy Corp. have started paying for Iranian crude oil in yen instead of dollars, announced company spokesmen on October 9. Both companies are following in the footsteps of Nippon Oil Corp.-Japan's largest oil refiner-which made the same announcement in September.

http://english.pravda.ru/business/companies/17-10-2007/98974-reserve_currency-0

And watch the dollar spin uncontrollably down until it is worth nothing...or we come out with an Ameuro or whatever they are calling it.

I am really happy that this is signs of Jesus' second coming, but it is also depressing to watch your country that you dearly loved, change to such ruins. It is like adoring your mother and watch her go into Dementia and become a monster that you could have never dreamed she would become. Very very sad.

[SisterNChrist]

And watch the dollar spin uncontrollably down until it is worth nothing...or we come out with an Ameuro or whatever they are calling it.

I am really happy that this is signs of Jesus' second coming, but it is also depressing to watch your country that you dearly loved, change to such ruins. It is like adoring your mother and watch her go into Dementia and become a monster that you could have never dreamed she would become. Very very sad.

Doesn't what's happening with our almighty $$$ spiralling (sp.) downward, be blamed on GWB & Condi Rice, for the way they are treating Israel these days...by pressuring them to fork over their God-given land to Pally squatters, perhaps? :nod It's as if this could very well be God's way of judging the U.S.. :idunno

[TomT]

Doesn't what's happening with our almighty $$$ spiralling (sp.) downward, be blamed on GWB & Condi Rice, for the way they are treating Israel these days...by pressuring them to fork over their God-given land to Pally squatters, perhaps? :nod It's as if this could very well be God's way of judging the U.S.. :idunno

Please keep this rule in mind:

[29] No Speculations on the Cause of Natural Disasters being Judgments from God - We are still living in the Age of Grace. God deals with individuals on a personal salvation basis and speculations of natural disasters and the timings of isolated or random natural disasters due to political, economic, or religious actions taken by governments, societies, or individuals does not warrant a direct judgment from God. After the Rapture, God will begin His direct judgments upon the nations.

[JenGC]

Actually, I read an article that Venezuela and Iran is forcing China and Japan to pay in Yen or Euro instead of the US dollar.

[ANewCreature]

Actually, I read an article that Venezuela and Iran is forcing China and Japan to pay in Yen or Euro instead of the US dollar.

You know, I see an article like this and I think, "Well, duh, of course japan will pay in yen, that's their currency.":scratch All I ever learned about investing and economics I learned in Junior Achievement and 1 semester of Econ in high school, and that was 20 years ago :idunno).

Could someone please explain why a country wouldn't normally use its own currency to pay for stuff? I was thinking that the money in the end had to get converted back into the selling country's currency.

The only thing I can imagine is that the "yen" being used is more like stock in the yen - sort of like...okay, here's how I think and tell me what's right, what's wrong, and what's plain off the wall...

Country A uses Argyle Money. (prettiest money on the planet.) Country B uses Blue notes. (A really jazzed up economy.) Now, anyone can buy bonds from either country that earn interest, right? And, if A has a better economy, they might well have more investors - even from B itself - investing in Argyles. Right?

Now, if country C sells widgets (they slice, they dice, they play music, they clean windows), I would think that C would expect A to pay for widgets in Argyles, and B in Blues. Then, C simply converts to their own currency, Creams - saying, "Okay, 2 Argyles = 1 Cream, 3 Blues = 1 Cream, so we dispose of what we got from A and B and produce that amount in Creams because we eanred that money by selling our widgets." Even if by disposing it's simply on paper.

What's different about our world's economy? Is what A and B pay in simply bonds, so that B could buy its widgets using stock in Argyles, or what?

[TomT]

Excellent point - also very important to note that the "sourced" article is from Pravda (the official mouth-piece for Russian Communism) - which is hardly a paragon of unbiased or valid analysis....

I can say with 40 years in the international oil business that yes more and more oil trades / purchase contracts are being enacted that are "contractually" based (indexed) in a currency other than the US dollar - (Yen - Euros) since the US dollar is indeed falling and weaker at this time....

[SisterNChrist]

Please keep this rule in mind:

OK, TomT. Sorry about that. I shall try to keep that rule in mind, no matter how feeble my 60+-year-old mind is nowadays.

I too, wondered how Japan could pay for oil with the US $$$, instead of their country's yen. :scratch

[MasterDummy]

Actually, I read an article that Venezuela and Iran is forcing China and Japan to pay in Yen or Euro instead of the US dollar.
July 13, 2007
Iran demands oil pay in yen not dollars
The dollar fell against the yen this afternoon on reports Iran has asked Japan to stop paying for its oil in dollarsRobert Lindsay
The dollar was driven down against the Japanese yen this afternoon, hit by the news that Iran had asked Japan to pay for its oil purchases in the Japanese currency and not in dollars.

Iran has sent a letter to Japanese refiners, signed by Ali A Arshi, the general manager of crude marketing and exports for Iran's national Iranian Oil Company, according to a report by Bloomberg.

The letter asks for yen payments "for any/all of your forthcoming Iranian crude oil liftings." The request is for all shipments "effective immediately".

Japan's oil payments to Iran rose 12 per cent last year to 1.24 trillion yen (£5 billion).
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article2070938.ece

[cbressler1976]

OK, TomT. Sorry about that. I shall try to keep that rule in mind, no matter how feeble my 60+-year-old mind is nowadays.

Don't feel bad...I'm only 30 and I forget EVERYTHING!<----my 5 year old son and almost 2 yr old son remember more then i do!!