Indian refiners are now paying for Iranian oil in renminbi, as the Chinese currency slowly but steadily replaces the US dollar in the Middle East:

According to a Reuters report dated April 17, 2026, and related market data, Indian refiners have imported crude oil from Iran for the first time in seven years, using renminbi for payment. This transaction worth approximately $200 million is seen by markets as the latest signal of global energy trade moving toward "de-dollarization."

Transaction Details:

Involving Companies: Indian Oil Corporation (IOC), Reliance Industries

Purchase Target: Iranian crude oil, about 2 million barrels, valued at roughly $200 million

Payment Route: Payment made in renminbi via ICICI Bank’s Shanghai branch to the seller’s account

Operational Features: Once the oil tanker entered Indian waters, IOC paid around 95% of the value. Sources indicate this was an "unconventional arrangement" aimed at mitigating sanction risks.

Direct Context: The transaction occurred within the 30-day temporary sanction exemption framework issued by the United States to stabilize oil prices.

Special Significance: This marks the first time since 2019, when the U.S. reimposed sanctions, that India has resumed importing crude oil from Iran.

Underlying Trend: Renminbi is becoming a mainstream currency in oil trade.

This transaction is not an isolated case. According to industry estimates, the role of renminbi in oil settlement across the Middle East is rapidly rising:

China-Oriented Crude Trade in the Middle East: The renminbi settlement share has historically surpassed 41%, overtaking euros for the first time to become the region's second-largest settlement currency; meanwhile, the U.S. dollar’s share has dropped to around 52%. Just a few years ago, the dollar held over 90% of the market share.

Major Oil-Producing Countries Following Suit:

Iran: Since January 1, 2026, all crude exports to China have been settled entirely in renminbi.

Saudi Arabia: In Saudi Aramco’s sales to China, the renminbi settlement ratio has reached 45%.

Russia: In Sino-Russian energy trade, renminbi settlement accounts for over 90%.

Infrastructure Support:

The Renminbi Cross-Border Payment System (CIPS) recorded a record daily transaction volume of 1.22 trillion yuan in early April 2026, providing a critical alternative channel to bypass SWIFT.

The internationalized contract scale of the Shanghai International Energy Exchange’s crude oil futures continues to grow rapidly, offering strong financial backing for renminbi-denominated oil pricing.

From India paying for Iranian oil in renminbi to Saudi Arabia, Russia, and other countries accelerating their shift, the renminbi is gradually but steadily eroding the dominant position of the U.S. dollar in energy trade across the Middle East and globally. Although the dollar still holds about half of the market share, the rise of "petro-renminbi" has emerged as an undeniable long-term trend.

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This article is based on a Reuters report dated April 17, 2026, and publicly available market data for reference only.

Original Source: toutiao.com/article/1862763424882700/

Disclaimer: The views expressed in this article are solely those of the author.