"Federal Reserve Chairman Ben Bernanke was once confronted by Ron Paul with the now famous question, “Is gold money?” Bernanke replied “no” and said central banks hold the precious metal as “tradition.” However, the Central Bank of Iran appears to disagree with Bernanke and is substituting gold for U.S. dollars.
Due to sanctions placed on Iran by the United States and the European Union, Iran is relying more on gold for international trade. On Tuesday, Mahmoud Bahmani, the governor of Iran’s central bank, said the country is ready to receive payment for oil supplies in gold without hesitation. Iran has the world’s third-largest oil reserves. Furthermore, Iran recently used to gold in order to import food, since other financial assets were frozen. Earlier this month, one European trader said, “Grain deals are being paid for in gold bullion and barter deals are being offered. Some of the major trading houses are involved.” Another trader explained, “As the shipments of grain are so large, barter or gold payments are the quickest option.”
at http://www.marketoracle.co.uk/Article33379.html
Due to sanctions placed on Iran by the United States and the European Union, Iran is relying more on gold for international trade. On Tuesday, Mahmoud Bahmani, the governor of Iran’s central bank, said the country is ready to receive payment for oil supplies in gold without hesitation. Iran has the world’s third-largest oil reserves. Furthermore, Iran recently used to gold in order to import food, since other financial assets were frozen. Earlier this month, one European trader said, “Grain deals are being paid for in gold bullion and barter deals are being offered. Some of the major trading houses are involved.” Another trader explained, “As the shipments of grain are so large, barter or gold payments are the quickest option.”
at http://www.marketoracle.co.uk/Article33379.html
