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 Bristol Star.

More Information

10 ℃

Cloudy in Bristol/Lulsgate

United Kingdom

Section

UK to send more submarine parts to Taiwan, China warns against exports

LONDON, England: Reflecting its increased willingness to support Taiwan, Britain approved a sharp increase in exports of submarine parts and ...

Budget session: Rajya Sabha adjourned, to meet on March 23

New Delhi [India], March 21 (ANI): Amid a series of disruptions in the Parliament, the Rajya Sabha was adjourned on ...

Muscle health depends on lipid synthesis: Research

Vienna [Austria], March 21 (ANI): Researchers at the Institute of Molecular Biotechnology (IMBA) of the Austrian Academy of Sciences characterize ...

A R Rahman and Mani Ratnam pose together in London for 'PS 2'

London [UK], March 21 (ANI): Oscar-winning composer A R Rahman gave fans a reason to rejoice as he shared a ...

'Talibanization of PoK intensifies under Pakistani influence'

Gilgit-Baltistan [PoK], March 21 (ANI): Wearing of hijab is now mandatory for female students and teachers in Pakistan-Occupied-Kashmir (PoK)and individuals ...

Rare and elusive duck species visit Kashmir after 116 years

Jammu and Kashmir [India], March 21 (ANI): Wular Conservation and Management Authority (WUCMA) employee Showkat Ahmad first reported and captured ...

International

Section