Thursday, September 12, 2013

India Seeks to Pay Iran Oil Imports Fully in Rupee

Indian Oil Secretary Vivek Rae told reporters today that India will seek paying for Iranian oil imports fully in rupees. India currently pays 45 percent of the import value of Iranian oil in rupees and Indian refiners hold back the remaining 55 percent as Iran explores avenues for alternative payment mechanisms. (Reuters, 12 September)

The value of Indian currency has sharply declined against the dollar lately and the country would prefer to settle its imports in rupee and save foreign currency.

Iranians have not said if they were ready to accept all payments in rupee. Iran has been unable to repatriate more than half its oil export revenues due to stringent banking sanctions.

No comments: