IRANIAN PRESIDENT AHMADINEJAD URGES OPEC TO QUIT PRICING OIL IN U.S. DOLLARS

Currently, oil sold by OPEC nations and traded globally is priced in U.S. dollars. President Ahmadinejad (along with Venezuela's Hugo Chavez) has urged OPEC to quit pricing oil in dollars. If another currency was used instead of the dollar, demand for dollars would decline, leading to further weakening of the already very weak U.S. dollar.

From AP via MSNBC:

According to the Iranian government's Web site, Ahmadinejad told OPEC Secretary General Abdalla Salem el-Badri the cartel "should establish a joint bank as well as having joint currency."

Oil is priced in U.S. dollars on the world market, and the currency's depreciation has concerned producers because it has contributed to rising crude prices and eroded the value of their dollar reserves.

Iran has repeatedly urged OPEC members to shift sales away from dollar. But Iran's proposal to trade oil in a basket of currencies is not supported by enough OPEC members, which include staunch U.S. allies such as leading producer Saudi Arabia.