Iran to trade in Euro

United Press International is reporting that Iran intends to open a bourse for trading in oil, it's own oil principally but companies from other countries are said to be looking at it as well. All well and good, but it plans to trade in Euro. This could have a major effect on the economy.

With oil being traded in Euro as well there will be less need for Dollars to buy oil and more for Euro, so unless China increases it's appetite for US debt (and there is a limit to how much it will buy) the laws of supply and demand will mean that the value of the Dollar will fall and the Euro rise. Good bye Germany's export driven recovery.