Iranian President Mahmoud Ahmadinejad has suggested an end to the trading of oil in US dollars, calling the currency "a worthless piece of paper".This is not just some off-hand comments from Dinner Jacket, it is actually an airing of an opinion I think many in OPEC have currently. The problem of a devaluing US Dollar may increase the price of oil, but once the OPEC nation gets its cash it then watches as their US Bank accounts begin to devalue.
The call came at the end of a rare Opec summit, and was opposed by US ally Saudi Arabia.
The Iranian president had wanted to include the attack on the dollar in the summit's closing statement.
The communique made little mention of the dollar, however, focusing instead on energy security and the environment.
The summit in Saudi Arabia was only Opec's third in 47 years.
During the talks, Opec members revealed differences about the future direction of the exporters' group.
But Opec leaders ended with a pledge to provide the world with reliable supplies of oil.
This issue is bigger than OPEC - it's a worry for all nations and companies who use US currency for trading purposes. While OPEC won't stop using US Dollars for the time being, you can bet your bottoming dollar that currencies like the Euro and the Yen will begin to replace the US Dollar as the basis of international trade.
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