{"id":150,"date":"2024-03-06T12:53:52","date_gmt":"2024-03-06T12:53:52","guid":{"rendered":"https:\/\/webiqquiz.com\/?p=150"},"modified":"2024-03-06T12:53:52","modified_gmt":"2024-03-06T12:53:52","slug":"rbi-urges-rupee-payments-for-persian-gulf-oil-to-diversify-currency-usage","status":"publish","type":"post","link":"https:\/\/webiqquiz.com\/rbi-urges-rupee-payments-for-persian-gulf-oil-to-diversify-currency-usage\/","title":{"rendered":"RBI Urges Rupee Payments for Persian Gulf Oil to Diversify Currency Usage"},"content":{"rendered":"
The Reserve Bank of India (RBI) has directed major state-owned refiners in India to encourage Persian Gulf oil suppliers to accept at least 10% of oil payments in rupees in the upcoming financial year. This initiative aims to boost the standing of the Indian currency in global trade and reduce the country’s dependency on the US dollar.<\/p>\n
As the world’s third-largest crude importer and a key driver of global oil consumption growth, India faces concerns that its surging energy demand could exert downward pressure on the rupee. The RBI, leveraging the nation’s growing consumption, seeks to propel the use of the Indian currency in international trade.<\/p>\n
Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp., the three major state-owned refiners, have initiated discussions with oil exporters regarding the proposal for rupee payments. However, exporters are expressing reservations due to worries about currency risk and conversion charges.<\/p>\n
Oil suppliers are hesitant to accept rupee payments due to potential currency fluctuations and associated conversion charges. To address these concerns, the RBI has suggested that Indian refiners share a portion of the currency transaction charges. Nevertheless, refiners are resisting this idea, fearing its impact on their profit margins.<\/p>\n
The predominant currency for global oil transactions remains the US dollar. While China has made some strides in using the yuan for oil payments, the dollar continues to dominate the global oil trade.<\/p>\n
In August of the previous year, Indian Oil made a partial payment to Abu Dhabi National Oil Co for a crude shipment in rupees. However, such transactions have been sporadic, and there haven’t been subsequent instances of rupee payments. Indian refiners have also utilized other currencies, including UAE dirhams, to settle payments for Russian crude oil imports.<\/p>\n
Several challenges impede the seamless implementation of rupee payments for oil imports:<\/p>\n
Potential Benefits Amidst Challenges Despite the challenges, the RBI’s advocacy for rupee payments in oil imports could yield significant benefits:<\/p>\n
The Reserve Bank of India (RBI) has directed major state-owned refiners in India to encourage Persian Gulf oil suppliers to accept at least 10% of oil payments in rupees in the upcoming financial year. This initiative aims to boost the standing of the Indian currency in global trade and reduce the country’s dependency on the […]<\/p>\n","protected":false},"author":1,"featured_media":151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/posts\/150"}],"collection":[{"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/comments?post=150"}],"version-history":[{"count":2,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/posts\/150\/revisions"}],"predecessor-version":[{"id":153,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/posts\/150\/revisions\/153"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/media\/151"}],"wp:attachment":[{"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/media?parent=150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/categories?post=150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/webiqquiz.com\/wp-json\/wp\/v2\/tags?post=150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}