India-Iran Oil Deal: Taking advantage of the one month temporary relief from US sanctions, Indian refiners have purchased oil from Iran. The most important thing was that this time the payment was made in Chinese currency Yuan instead of dollars. Which shows a different attitude in the last several years. With Indian refiners buying oil from Iran again, the method of payment is the most discussed in this entire deal.

Why was the deal done in yuan?

The method of payment was the most special in this deal between India and Iran. Indian companies have made payments in Chinese currency Yuan instead of dollars. According to the information received from The Times of India report, Indian Oil Corporation (IOC) and Reliance have made this payment through ICICI Bank. Which has been processed from the Shanghai branch of the bank. However, the identity of these sellers is not yet clear.

Due to the long-standing US sanctions on Iran, it is almost not possible to make payments in dollars. In such a situation, to take advantage of the temporary exemption of 30 days given by America, Indian companies chose Chinese currency as an alternative.

What will be the benefit to India?

Payment in Yuan clearly indicates that India no longer wants to depend only on dollars in such deals. The country is also exploring other options. Especially when it comes to buying oil from banned countries. This deal of India in exchange of other currency with countries like Iran can open new avenues.

Such steps may bring changes in international oil trade in future. Where the trend of transactions in currencies of different countries may increase. Which will help in reducing dependence on US dollar.

America gave relief

Due to increasing tension in West Asia, oil prices were rising rapidly. In such a situation, the Trump administration has decided to provide some relief. Restrictions on the purchase of Russian and Iranian crude oil that was already at sea have been eased for some time. So that prices can be kept under control for some time.

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