14-03-07

Iran has been in talks with at least one Japanese refiner about changing the currency used to pay for crude oil to the yen or euro from the dollar as Tehran faces growing pressure from Washington over its nuclear programme, a company source said. Currently, almost all international crude oil transactions, including all exports to Japan, are paid in dollars.
"We are directly speaking with Iran," the refinery source said. "(The company) has been talking about denominating Iranian crude in euros or yen."

Japan buys 486,000 barrels of crude oil per day out of Iran's production of about 3.8 mm bpd. Since last year, several media reports including a state-run Iranian newspaper have said Iran is looking to conduct more trade in euros and other currencies, and the world's fourth-largest oil exporter has started receiving some payments for oil in euros.
The state-run paper reported in December that the dollar component of Iran's foreign reserves had fallen to less than a third from 40 %.

Washington has imposed sanctions on Iranian banks as part of its campaign to isolate Tehran for its nuclear programme. An International Monetary Fund spokesman said that the US sanctions do not contravene foreign exchange rules.
The Japanese refinery source said his company and other Japanese refiners had not received an official request from Iran to change currencies, and that Tehran might base its next move on the outcome of a pending United Nations decision.

Six major powers hope to put the finishing touches on a draft text imposing sanctions against Iran for refusing to suspend uranium enrichment, which can be used in a bomb or for peaceful ends.
The new sanctions are expected to include an embargo on Iranian conventional arms exports, a ban on new commitments for government loans to Tehran and an asset freeze on an expanded list of Iranian officials and companies associated with the country's nuclear programme, diplomats said.