Following the switch, the interest rate for the facilities provided from the Foreign Exchange Reserves will be reduced from12 to 5 percent. Since being introduced by the European Union, the euro has gained popularity internationally and there are now more euros in circulation than the dollar. Full Story »
Posted by Ben Ross
I like the fact that this article is concise and to the point, but it doesn't do a great job explaining why Iran decided to replace the dollar, and what this means for the United States. I am not very familiar with how Iran and the US conduct transactions or what currency they use in Iran, so I was confused about whether Iran is only using the Euro now or whether they only let countries buy things from them with the Euro. I understand that the Euro is stronger than the dollar so it makes sense that Iran would want to get paid in Euros instead of the weaker American dollar.
