Two Indian oil companies have reportedly started buying crude oil from Iran using the Chinese yuan.
Foreign media reports that leading companies such as Indian Oil (IOC) and Reliance are taking advantage of the temporary grace period provided by the United States to buy oil from Iran using the yuan.
In this transaction, which is being carried out through ICICI Bank in Mumbai, the money is first remitted to bank accounts in Shanghai, and then credited to the accounts of Iranian sellers.
Despite the temporary relief, economic analysts point out that buyers have turned to such alternative financial channels due to severe obstacles in using standard banking systems for transactions with Iran. However, this temporary relief period granted by the United States to several countries, including India, is set to end very soon.