Venezuela Considers Selling Oil in Euros
Caracas, Venezuela, May 18, 2006—Venezuelan President Hugo Chavez declared on Tuesday that Venezuela would consider putting the sale of its oil in Euros. His comments come after Iran had announced that it too is contemplating switching to the European currency. “That was an interesting proposal made by the president of Iran,” Chavez told Channel 4 News in London. “We are also free to choose between the dollar and the euro. I think that the European Union has made a great contribution with the Euro. In a way, what the President of Iran is saying… is recognizing the power of Europe, that they have succeed in the integration and have a single currency that competes with the dollar, and Venezuela can consider that, too, we are free to do that,” Chavez added.
According to the BBC, Iran announced earlier this month that they supported the creation of an “oil exchange that traded solely in Euros”. Experts have warned that such a conversion to the European currency could trigger central banks to convert their dollar reserves to euros, thus potentially worsening the already declining US currency.
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