India to pay for Iranian crude oil in rupee

[villager]

Source: The Hindu

India to pay for Iranian crude oil in rupee

After having explored various options to make payments and having run out of them, India is understood to have decided to pay Iran for the crude oil supplied by it in rupee terms.

After discussions between the Finance Ministry and the Petroleum and Natural Gas Ministry, it has been decided that the Ministry will seek the note of the Union Cabinet to switch over to the rupee payment system for the Iranian crude, officials in the Petroleum Ministry said.

Under the newly floated but yet to be approved proposal, National Iranian Oil Co (NIOC) will open rupee account with Indian banks and could use the money to purchase non-strategic items such as railway imports and buy commodities. It will not be able to use the money to invest in India or for buying shares or companies. The Finance Ministry will prepare and submit a list of do's and don'ts for Iranian authorities from the money it gets as part of the crude oil payments.

<snip>


Read more: http://www.thehindu.com/news/national/article1989248.ece

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meanwhile, in the other news...

[dipsydoodle]

1. Sensible deal

Innit. :)

[xchrom]

2. Recommend

[Ikonoklast]

3. It would be logical then for Iran to spend those earnings on purchases from India.

Makes sense, a win/win for both economies.

[MedicalAdmin]

4. This could be really bad news for the US if it catches on.

The use of the US dollar as the oil reserve currency is already hanging by a thread. If this precedent catches on then the US dollar is toast.

[villager]

5. Exactly so -- if this begins the "snowball," then buh-bye dollar!

And watch our gas, et al, cost even more.

Why, we'd be suddenly forced to make stuff here again, just so we could afford it!

[MedicalAdmin]

14. It might be good for local economies, but the pain

would be disproportionately borne by the poor and lower middle class. Everyone rich would suddenly find themselves surrounded by a fire sale as everything comes onto the chopping block, including, I think likely, people.

No matter how you parse this news, it isn't good for the US.

[dipsydoodle]

8. That's what necessary

Has been so for years. Try funding wars when you're broke.

[MedicalAdmin]

13. It may be necessary but a lot of pain will be caused by that...

see my response #12 below.

[stevenleser]

11. Not so much anymore since the Euro is also in trouble.

Back in 2006/2007 you could make this argument much more forcefully. After the PIIGS, the Euro is on about as bad a footing as the dollar.

[MedicalAdmin]

12. It doesn't need to be the EURO...

just another stable currency.

The point is that despite ramblings from the libertards, the US dollar is defacto backed up by something of value -- oil. If oil transactions are no longer transacted in exclusively in US dollars then the value of the US dollar will plummet and inflation will run rampant.

And unfortunately with the US no longer able to afford it's wars, the people will no longer be able to afford food. Imagine if you will the price of everything from utilities, rent, food, gas, etc... doubling or more in a very short time. And then doubling again. And again.... into that could step another Hitler or Bush.

[stevenleser]

15. No way the world accepts anything other than the Dollar or Euro. n/t

[MedicalAdmin]

16. Unlikely, but the future may bring change.

But I agree that other options are unlikely at this time.

[Nihil]

17. I guess you didn't read the OP or the headline of the thread then? (n/t)

:eyes:

[stevenleser]

18. Sure did. One exception doesnt make a rule. Or didnt anyone ever teach you that?

:eyes:

[sulphurdunn]

6. The last guy to do this

was Saddam Hussein when he switched from dollars to euros in 2000.

[plumbob]

7. Yes. Those danged Indians had better watch themselves.

US is not fond of other countries actually taking care of their own.

[dipsydoodle]

9. He lost a bundle on that initially

but then made a fortune when the value of the Euro went up.

[sulphurdunn]

10. In the end he lost his country

and his life, and it obviously had nothing to do with 9-11 or WMD.