TEHERAN, Iran - September 20, 2009 - Iranian President Mahmoud Ahmadinejad ordered the replacement of the U.S. dollar by the euro in the country's foreign exchange accounts.

The September 12 edict was issued following a decision by the trustees of the country's foreign reserves, according to a press TV report.

Earlier, the Islamic Republic of Iran had announced that the euro would replace the greenback in the country's oil transactions.

Iran has called on other OPEC members to ditch the sinking dollar in favor of the more credible euro.

Following the switch, the interest rate for the facilities provided from the Foreign Exchange Reserves will be reduced from 12% to 5%.

Since being introduced by the European Union, the euro has gained popularity internationally and there are now more euros in circulation than the dollar.

The move will also help decouple Iran from the U.S. banking system.