The sanctions against Iran have in recent months resulted in countries trading with Iran for oil using commodities and non US dollar currencies. The latest, has been Uruguay announcing that it is going to trade rice for Iran’s oil. These sanctions have clearly backfired and only hasten the end of the US Dollar as the world’s reserve currency. Already this week at the BRICS summit there has been calls for a “BRICS Bank” which would reduce dependence on the western-led financial institutions, the IMF and World Bank as well as  signing two landmark agreements aimed at eventually replacing the dollar with their own currencies for trade amongst themselves.

Uruguayan Agriculture Minister Tabare Aguerre says his country is ready to export rice to Iran in exchange for Iranian oil in the face of the US-led unilateral sanctions on Tehran.
“If Iran is willing to barter oil for rice we will do it and we will take out currency from (the operation),” Reuters quoted Aguerre as saying on Friday.

Uruguay, which is Latin America’s top rice exporter, sold 90,000 tons of rice to Iran in 2011.

Aguerre’s remarks came as the US and EU have imposed tough financial and oil sanctions against Iran since the beginning of 2012, claiming that the country’s nuclear energy program includes a military component.