alt Hacker NewsIf the petrodollar is irrelevant, why is Iran insisting that anything transiting the straight of Hormuz be bought using the Chinese Yen?
Replies
kortilla • yesterday at 7:14 AM
Because 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.
Yuan. Not Yen. Iran shouldn’t be insisting anything.