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 Business Sun.

More Information

27 ℃

Thunder in the Vicinity in Seletar

Financial Markets

Section

Techs jump in widespread U.S. stock markets advance

NEW YORK, New York - Wall Street continued its advance on Tuesday as investors continued to weigh up the health ...

Mercedes modernizing EV plants in China, Germany, Hungary,

FRANKFURT, Germany: The German Automobilwoche magazine has reported that as part of its efforts to switch to selling electric vehicles ...

Banks rebound lifting U.S. stock markets, Nasdaq gains 45 points

NEW YORK, New York - U.S. stocks rallied on Monday following the weekend buy-in of Credit Suisse by UBS, which ...

US loans $300 billion to banks following closing of SVB bank

WASHINGTON D.C.: The US Federal Reserve Bank has announced that cash-strapped banks throughout the US borrowed some $300 billion during ...

UBS to buy Credit Suisse for fraction of its value, Swiss government to underwrite losses

ZURICH, Switzerland - Depositors will be fully protected, shareholders will have their equity dwarfed, while bond holders will be largely ...

Washington buoyed by February retail sales growth

WASHINGTON D.C.: According to a report from the US Commerce Department, in February, US retail sales fell moderately, likely the ...

Technology

Section