Iran agrees to take all oil payments from India in rupees

[Manindra]

What is smart by Iran here?

If they didn't accept this then they have no other option to take the payment.

 

[harpoon]

This means India will increase oil import from Iran.

 

[walle]

So simple, oil is usually priced in dollar, for Iran they use the Euro. Since Indian rupee has gone down so rapidly against every single major currency the oil gets ridiculously expensive for them to the point of cutting back. Iran obvious can't afford to lose the few customer who still buys their oil so resorts to accepting indians worthless currency because little is still better than nothing.

 

[BATMAN]

If they didn't accept this then they have no other option to take the payment.

True,,, other wise India would receive all Iranian oil free of cost.

This means India will increase oil import from Iran.

What is the issue in buying Iranian gas?

 

[Hellraiser007]

So simple, oil is usually priced in dollar, for Iran they use the Euro. Since Indian rupee has gone down so rapidly against every single major currency the oil gets ridiculously expensive for them to the point of cutting back. Iran obvious can't afford to lose the few customer who still buys their oil so resorts to accepting indians worthless currency because little is still better than nothing.

Don't worry India will do well economically this decade and plan not to be in crisis unlike china

 

[Pakistanisage]

True,,, other wise India would receive all Iranian oil free of cost.



What is the issue in buying Iranian gas?

I think US pressure.

On the other hand, since Iran is open to accepting payment in Rupees, we should move the issue forward since US Dollars ans International Banking will not be involved.

 

[harpoon]

What is the issue in buying Iranian gas?

There are 3 main issues:

1. Sanctions means few banks are ready to deal with Iran.

2. Insurance.....Major insurance companies mainly based in Western Countries will not insure refineries processing Iranian crude making oil companies less likely to go after Iranian Oil.

3. Whatever companies that deal with Iran will face sanction from US.

 

[Manindra]

True,,, other wise India would receive all Iranian oil free of cost.



What is the issue in buying Iranian gas?

No , then they have to import any commodity of same value & problem in buying Iranian gas are you

 

[SirHatesALot]

I think US pressure.

On the other hand, since Iran is open to accepting payment in Rupees, we should move the issue forward since US Dollars ans International Banking will not be involved.

Didn't you guys have a gas pipeline project with Iran?

 

[indoPunjabi]

Iran don't have any choice but to accept indian rupees. US has screwed Iran pretty well

 

[Globenim]

Why can't Iran coin a barter deal with India instead? Rice, food and ressources for oil instead of worthlesss rupees?

Indian rupees may be the last resort when Indians cant pay with anything else. But a few options are still open before throwing out oil for worthless bits and paper from a failing economy.

 

[HongWu]

Use the worthless rupees to buy gold from Indian households.

 

[BATMAN]

No , then they have to import any commodity of same value & problem in buying Iranian gas are you

Why i'm no problem in extending transit aid to YOU... worth billions of $.

 

[my2cents]

Why can't Iran coin a barter deal with India instead? Rice, food and ressources for oil instead of worthlesss rupees?

Indian rupees may be the last resort when Indians cant pay with anything else. But a few options are still open before throwing out oil for worthless bits and paper from a failing economy.

We have the potential to grow our trade with Iran from $15 billion to $25 billion if Iran opens up to Indian imports. It is mostly oil related trade and India has potential to expand its product portfolio to other items like food, IT , machinery and textiles.

 

[Truth Finder]

Pressure on Indian rupee will decrease against dollar though it was being done through other currencies..

Prediction:- Rupee will enter 58 level on Monday