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 Kolkata Sun.

More Information

28 ℃

Haze in Kolkata/Bose

International

Section

California joins with drugmaker to manufacture affordable insulin

SACRAMENTO, California: The state of California and generic drug manufacturer Civica have announced a 10-year partnership to produce affordable, state-branded ...

Newly signed Wyoming law outlaws use of abortion pill

CHEYENNE, Wyoming: A Wyoming bill outlawing the use or prescription of medication abortion pills, which was passed by the state's ...

US, states using cloud seeding to generate rain in west

DENVER, Colorado: The Southern Nevada Water Authority has voted to accept a $2.4 million grant from the US Bureau of ...

Wet winter ends three year California drought

WASHINGTON D.C.: The US government has reported that the exceptionally wet winter in California this year will offer relief from ...

German police crackdown on gangs blowing up ATMs in robberies

FRANKFURT, GERMANY: Authorities said that as part of a crackdown on gangs suspected of blowing up ATM machines and stealing ...

German visitor to talk computer chips in Taiwan

BERLIN, Germany: Germany will send a cabinet minister to visit Taiwan next week, at a time when Berlin is reviewing ...

India

Section