Petrodollar loses another customer as India agrees to buy oil from Iran in Rupees

Petrodollar loses another customer as India agrees to buy oil from Iran in Rupees by Ken Schortgen, JR. – The Daily Economist

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2018 is quickly becoming the year that the Petrodollar likely ends, or at least loses more than half of its customers as on May 30, another tandem of nations have agreed to conduct oil purchases in a different currency.

Iran and India will soon conduct oil transactions in Rupees according to Iranian officials.

India will reportedly pay for Iranian oil in rupees as the two countries seek to bypass the US economic pressure on Tehran, industry officials have told the Sputnik news agency.

Under the deal, the payments for oil will be made through India’s state-run UCO Bank, which has no US exposure. The countries are also discussing the barter-like system to avoid US sanctions, Sputnik reports.

Iranian Foreign Minister Mohammad Javad Zarif is on a visit to India this week, where he has met with Indian counterpart Sushma Swaraj. “During the talks, the two sides also exchanged views on a further expansion of ties in banking, energy, trade, insurance, shipping, use of national currencies, Chabahar projects and Chabahar-Zahedan railway,” Zarif said in a statement. – Russia Today

Discarding the Iran Deal along with the implementation of new sanctions by the U.S. has already driven Iran to no longer sell oil in dollars, and is pushing several nations to simply bypass the Petrodollar out of fear they too will be hit with an economic salvo.

With China now offering the world an alternative path to buying oil, and more and more OPEC nations becoming tired of being coerced or extorted by Washington, the days of America’s control over the reserve currency appears to be dwindling fast.

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Ken Schortgen

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