Expert: India's decision to settle Iran oil purchases in yuan marks a major shift in global trade
In an article published on the club's website, Kashiif Hassan Khan, an expert at the "Valdai" Discussion Club, wrote that India's decision to use the Chinese yuan for settling its oil purchases from Iran marks a significant turning point in global trade.
Previously, media reports indicated that after temporary sanctions were lifted by the United States, Indian refineries settled payments for Iranian crude oil through ICICI Bank using the yuan.
Khan wrote: "India’s decision to pay for Iranian oil in yuan signals a potentially important shift within the evolving landscape of global energy trade and finance. Although this move may appear merely technical, its implications extend far beyond bilateral trade, touching upon sanction mechanisms, monetary policy, and the long-term trajectory of the dollar-centric international financial system."
The expert believes India made this move to avoid U.S. financial oversight, but the arrangement also benefits Iran.
Khan pointed out: "China is not only a major buyer of Iranian oil but also a key source of goods and investment for Iran. As such, the yuan has become a practical medium of exchange for Iran, enabling it to reinvest its revenues into imports from China. This creates a self-sustaining trade cycle, reducing dependency on Western financial systems."
Source: sputniknews
Original: toutiao.com/article/1863899355077644/
Disclaimer: The views expressed in this article are those of the author alone