Russia may dump weakening US dollar in its energy deals

It seems that the rejection of the US dollar has become a fashion trend in modern-day business relations. Several major oil and gas exporters have recently announced their plans to use a different currency in their deals with other countries. The heads of Iran, Venezuela and Ecuador expressed such an opinion at the OPEC summit in November. Iranian President Mahmoud Ahmadinejad particularly stated that Iran needs to replace the dollar because of its ongoing setback. His Venezuelan counterpart, Hugo Chavez, expanded on the idea and put forward a suggestion to change the dollar for the basket of currencies (apart from the dollar it includes the euro, the British pound, the Japanese yen, the Chinese yuan and the Venezuelan bolivar) to recalculated world prices on oil. Ahmadinejad continued with an idea to set up the OPEC Oil Exchange and the OPEC Bank.

Rafael Correa, the president of Ecuador, supported the proposal and noted that the dollar fall eats up a considerable part of oil exporters’ income: “In spite of the fact that oil prices have reached the level of about $100 per barrel, in fact they are lower than in the 1980s,” Correa said. However, these ideas received no support from OPEC. The dollar peg issue was put off till the next OPEC summit.

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