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In-Briefs

India/Iran: Tehran Asks New Delhi To Pay For Oil In Yen

January 23, 2012
| Security, Energy
| Asia and the Pacific, Middle East and North Africa

Iran has allegedly asked India to pay for oil using the Japanese yen after Indian officials proposed to pay with rupees during talks in Tehran last week . . . the rupee is not fully convertible to the Iranian rial . . . in addition, the yen has strengthened 7.2 percent over the last 12 months, while the rupee has fallen by 9.2 percent in the same period . . . Tokyo had agreed last month to make $15 billion available to New Delhi in a currency swap arrangement . . . India pays Iran about $1 billion a month for supplies of 370,000 barrels of crude oil per day, which is 12 percent of India’s energy needs . . . Iran wants to receive partial payment in yen because Tehran is concerned that they might get a poor exchange from rupee payments . . . Iran is also worried that India’s total annual bill cannot be paid completely through exports . . . Tehran would like New Delhi to invest in non-strategic infrastructure projects in return for oil in an attempt to avoid sanctions, however this is unlikely . . . Japan, China, Russia, and South Korea already plan to trade with Iran using their respective currencies to avoid sanctions on Iran by the United States and European Union.

 
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