₦airaland Forum

The IRGC are fools. The American dollar is winning.

Here are the illustrations of why I say the American dollar is the winner.

There were several protests in Pakistan concerning the fuel price increase last week. When they interviewed the protesters. It was then I knew most of them, including the pro-Iranian supporters, don't even understand the economy and what the Iranian IRGC has caused with the blockage of the Strait of Hormuz.

The protesters said, "Initially the excuse of the government was the blockade of the Strait of Hormuz. But now the IRGC has opened the strait for Pakistani ships. Why do the fuel prices keep going higher? They also said refill stations are limiting the numbers people can buy.

Here is why the fuel is not cheap for Pakistan, India, China, or any other friendly country to Iran.
Oil is priced in dollars, international cargo,shipment and logistics are in dollars. The current price for Middle East oil is between $120 and $170, depending on the country and type of oil. And that's the paper price on the net. But for you to get access to that oil, you might pay $160 to $200 based on connection.

Also, the Iranians are charging $2m for friendly vessels. Claiming they requested them to pay in yuan. What a foolish thing to say.

These people are truly dumb. Because oil is priced in dollars. Even if you pay in yuan, it's the dollar equivalent. It doesn't change anything. They charge $2m as well for ships.

Even if Nigeria buys the oil from the Middle East in naira. As far as it's the equivalent of USD rate. It's the same thing as paying with dollars.

This doesn't affect the dollars at all.

Even the Iranian top military stack their money in dollars. They still do trade with dollars despite talking trash about USD online. Most of the ship pay in USD.

Paying in dollar is sweeter for USA. It keeps USD in good demand and thus better valued.
Iran, China and USA are gaining from it as things stand.
Iran gains extra toll fee.
USA gains from petrodollar arrangement.
China gains when Yuan is used for the tolling of Homuz.

This ur post is worrisome to the mind.

Your level of cluelessness needs to be studied as a 4 units course in school. If I tell you a house is valued at 2m dollars and I pay you the Nigerian equivalent of it, how does that add value or improve the value of the dollar when we have actually not traded using the dollar? If I decide to buy goods worth 2m Japanese yen and I eventually make the payment in Turkish Lira, how does it add value to the yen?

Currencies only gain value when they are used in doing business transactions as a form of payment which could be via cash or e-payment. There must be a demand and supply of that currency. Currency doesn't gain value simply because you used it to value the worth of a transaction. The Chinese yuan is going to gain value when countries start using it to pay for transit fee through the straight of hormuz as it would increase its share of percentage of funds available for international payments and settlements. This is because the demand for the yuan would increase and the demand for dollars would decrease. China is already positioning the yuan to be used as a means of preserving/storing foreign reserves just like the dollar. As a matter of fact, it's been propped up as an alternative to the dollar for international settlements.

fineboynl:
The IRGC are fools. The American dollar is winning.

Here are the illustrations of why I say the American dollar is the winner.

There were several protests in Pakistan concerning the fuel price increase last week. When they interviewed the protesters. It was then I knew most of them, including the pro-Iranian supporters, don't even understand the economy and what the Iranian IRGC has caused with the blockage of the Strait of Hormuz.

The protesters said, "Initially the excuse of the government was the blockade of the Strait of Hormuz. But now the IRGC has opened the strait for Pakistani ships. Why do the fuel prices keep going higher? They also said refill stations are limiting the numbers people can buy.

Here is why the fuel is not cheap for Pakistan, India, China, or any other friendly country to Iran.
Oil is priced in dollars, international cargo,shipment and logistics are in dollars. The current price for Middle East oil is between $120 and $170, depending on the country and type of oil. And that's the paper price on the net. But for you to get access to that oil, you might pay $160 to $200 based on connection.

Also, the Iranians are charging $2m for friendly vessels. Claiming they requested them to pay in yuan. What a foolish thing to say.

These people are truly dumb. Because oil is priced in dollars. Even if you pay in yuan, it's the dollar equivalent. It doesn't change anything. They charge $2m as well for ships.

Even if Nigeria buys the oil from the Middle East in naira. As far as it's the equivalent of USD rate. It's the same thing as paying with dollars.

This doesn't affect the dollars at all.

Even the Iranian top military stack their money in dollars. They still do trade with dollars despite talking trash about USD online. Most of the ship pay in USD.

Requiring Yuan for one of the world's most critical maritime checkpoint in Hormuz creates a new, mandatory demand for the Chinese currency. This will significantly boost the yuan's international status. Now is the time of the "Petroyuan". This move is weakening the "petrodollar" system. Iran has implemented a ranking system where "friendly" nations receive better terms. You cannot pass the Strait of Hormuz if you don't use the Yuan for paying for your boat insurance. If you don't pass by the Strait of Hormuz, you will have to take an alternative route and the transport, the insurance, the freight rates will be very expensive

Horus:
Requiring Yuan for one of the world's most critical maritime chokepoints in Hormuz creates a new, mandatory demand for the Chinese currency. This will significantly boost the yuan's international status. Now is the time of the "Petroyuan". This move is weakening the "petrodollar" system. Iran has implemented a ranking system where "friendly" nations receive better terms. You cannot pass the Strait of Hormuz if you don't use the Yuan for paying for your boat insurance. If you don't pass by the Strait of Hormuz, you will have to take an alternative route and the transport, the insurance, the freight rates will be very expensive

that's force just what they want you to believe

fineboynl:
that's force just what they want you to believe

Not belief but Facts. You can't pass the Straight of Hormuz if you don't use Yuans for the insurance of your boat. Even the insurers will refuse to insure your boat because they know that the Iranian authorities will not deliver a permit for your boat to pass the Straight without paying in Yuans. As long as the Iranians control the Straight your boat will have to use a much more expensive alternative route if you don't use the Yuan. Now China and Iran work together.