http://www.digitaljournal.com/article/252815

Iran to OPEC: Form Joint Bank and Stop Oil Sales in Dollars

Posted Apr 7, 2008 by Chris V. Thangham
Iranian President Mahmoud Ahmadinejad wants its OPEC members to stop oil trading in U.S. dollars and form a joint bank. It needs a majority to approve this request.
Mahmoud Ahmadinejad
President of Iran at Columbia University.
Photo by Daniella Zalcman
This request was posted at the Iranian government’s website according to the Associated Press.
President Ahmadinejad told OPEC Secretary General Abdalla Salem el-Badri that the cartel should establish a joint bank as well as having joint currency."
Oil has traditionally been priced in U.S. dollars on the world market for a long time, but the decreased value of the dollar has contributed to rising crude oil prices and has devalued the dollar reserves. Oil producers are concerned and a few of them including Iran want OPEC to trade in a basket of currencies.
To change the currencies for oil trading, a majority of members have to approve. However, many oil-producing nations are allies of the USA, including the biggest oil producer in the world: Saudi Arabia.
One German expert predicts oil will increase to $150 per barrel in five years and $200 in 10 years.
If oil is traded in non-U.S. currency, the cost of getting oil will also increase with currency conversion costs, and ultimately drivers will have to pay more.