India to banks, businesses: do not use China yuan currency

Robert Besser
15 Mar 2023, 16:26 GMT+10

Due to long-running political tensions with its neighbor and rival China, India has ordered banks and traders to avoid using Chinese yuan to pay for Russian imports
Now a leading buyer of discounted Russian oil and coal, India prefers to use United Arab Emirates dirham to settle trade
Since 2021, Indian and Chinese troops have been locked in a standoff along their disputed Himalayan border

NEW DELHI, India: Due to long-running political tensions with its neighbor and rival China, India has ordered banks and traders to avoid using Chinese yuan to pay for Russian imports.

Now a leading buyer of discounted Russian oil and coal, India prefers to use United Arab Emirates dirham to settle trade, and said it is not comfortable with foreign trade settled in yuan. Further, India cannot settle in yuan until relations with China improve.

Since 2021, Indian and Chinese troops have been locked in a standoff along their disputed Himalayan border.

India's largest cement producer, UltraTech Cement, earlier paid for a cargo of Russian coal using Chinese yuan, raising concerns among officials in New Delhi.

Reuters has reported that in recent weeks, Indian refiners began settling some Russian oil purchases in roubles, with payments being processed, in part, by the State Bank of India via its roubles account in Russia.

However, as the rouble is only partially convertible and the two countries have yet to finalize a framework, the majority of their trade is still paid for in other currencies.

Due to India's well-established political and security ties with Russia, as well as the fact that it is a major buyer of Russian arms, it has not yet condemned Moscow's invasion of Ukraine.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Birmingham News.

More Information

7 ℃

Drizzle in Birmingham

International

Section

Humza Yousaf, first Muslem leader of western country, to lead Scotland

EDINBURGH, Scotland: Humza Yousaf, the first Muslim to lead a democratic western European nation, was sworn in as Scotland's new ...

Officials warn that supply shortages still haunt US planning

WASHINGTON D.C.: Potentially hampering US efforts to arm Ukraine against Russia's invasion, rebuild local infrastructure and boost production, manufacturers of ...

US lawmakers look to prevent violent passengers from flying

WASHINGTON D.C.: After a series of high-profile incidents aboard US aircraft, several bipartisan lawmakers will again push for legislation to ...

China sends ship to violate Vietnam economic zone waters

HANOI, Vietnam: Tensions were again increasing off the coast of Vietnam as Hanoi ordered its navy to shadow a Chinese ...

In aftermath of war in Iraq, perpetrators still not held accountable

In Warsaw last February, President Joe Biden condemned the lawless Russian invasion of Ukraine: "The idea that over 100,000 forces ...

Chinese aggression causes Japan, US, Philippines to begin security talks

TOKYO, Japan: Fears over intensifying Chinese military activity directed towards Taiwan could escalate into war have prompted Japan, the United ...

United Kingdom

Section