Amidst the changes due to international developments, India has used the Yuan instead of dollars. A Reuters report states that Indian refiners are now paying some of the crude oil from Russia in the Chinese currency Yuan instead of dollars.
Because Of This, The Need For Yuan
In the news, quoting sources aware of the matter, it has been told that due to the Western sanctions imposed on Russia, the Indian refiner has to do this. Russia invaded Ukraine in February last year. Since then, the war has continued in Eastern Europe till now. Due to this, western countries led by America have imposed tough economic sanctions on Russia. Due to these restrictions, Indian refiners cannot pay for Russian crude oil in dollars.
These Changes In Global Trade
The effect of sanctions on Russia is that big changes have also been seen in global trade. Russia has now become the biggest supplier of crude oil to India, and India has become its biggest buyer. Along with this, Russia has now become the biggest supplier of China as well, whereas, after India, China is the second largest buyer of Russian crude oil.
China Is Promoting Yuan
Indian refiners are making some payments for Russian crude oil in Yuan when China promotes its currency as the new global currency. The dollar has been in the role of global currency for a long time. However, the dollar’s dominance seems to be decreasing in the current situation. Sanctions on Russia have also reduced the dollar’s power, while the Yuan’s importance has increased.
These Companies Paid
An Indian government source has told Reuters that if banks are not settling trades in dollars, some refiners pay them in other currencies, such as the Yuan. Sources say that the Indian Oil Corporation first did this work in June. He also claimed that at least 2 private refiner companies in India are also paying in Yuan. There are currently three refiner companies in India: Reliance Industries Limited, Nayara Energy and HPCL Mittal Energy Limited.
