Indian refineries are purchasing Iranian crude oil. Meanwhile, there is news that India is paying for most of the crude oil purchases not in Iranian currency or dollars, but in Indian rupees. Besides, some transactions are also being done through third countries.
This transaction is taking place at a time when crude oil prices have increased due to war and America iranThe ban on oil has been lifted for 30 days. This ban has been lifted for Iranian oils present in the sea. In such a situation, many countries including India are ready to buy oil from Iran. India has also imported some consignments from Iran, most of the payment for which has been made in rupees.
According to the Moneycontrol report, two government officials said that the payment depends on a combination of local currency settlement, trade adjustment and offshore routing depending on the transaction. One of the officials gave an update that transactions with Iran are being done in rupees. We are also making some payments through third countries. Regarding the use of domestic currency, another official said that we Iranians Oil The payments are made in local currency and obviously it is happening through a bank.
How will the transaction system work?
The official said that settlement is being done in rupees through Vostro accounts. Foreign institutions registered under this system India You can open an account through which domestic settlement of payments will be possible. He further said that Iran can use this money to purchase Indian goods and services ranging from Basmati rice to tea.
The report said Iranian banks are largely excluded from the SWIFT global messaging system, while Indian banks with significant international business are avoiding direct participation to reduce risk. The official said that for this reason, those banks which have very less exposure are being used for the transaction, and a third country is also being used where the Indian bank has a branch.
no official announcement yet
It is noteworthy that America had imposed an embargo on Iranian crude oil, which had stopped the import of Iranian crude oil in May 2019. Earlier, Iran was one of the top oil suppliers to India. India’s purchases of Iranian crude have so far been limited and are being met through spot deals, with no official details of any deliveries received yet and the total number of contracts between refiners not disclosed.
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