Iran to accept oil payments in any currency: What it could mean for India | Economy & Policy News
Iran’s central bank Governor Abdolnaser Hemmati has said the country would be free to receive payments for its oil exports in any currency of its choice, underlining Tehran’s intent to diversify beyond dollar-based transactions, Al Jazeera reported.
The remarks come at a time when hopes of a broader US-Iran understanding have revived discussions around sanctions relief, oil flows and regional trade.
According to a video message shared by Iran’s government information office, Hemmati said Iran would not be restricted to receiving oil payments in US dollars and could choose alternative currencies depending on its interests and trading arrangements.
He also indicated that Iran would have flexibility over how its oil exports are transported and how payments are settled.
The comments follow reports of recent negotiations between Iran and the United States, including discussions around the release of about $12 billion in Iranian assets and easing restrictions linked to Iran’s oil sector.
What it could mean for India’s oil imports
Any easing of sanctions on Iranian oil could reopen opportunities for India, which had once been among Tehran’s key crude buyers. Renewed access to Iranian crude could benefit India because of shorter shipping distances and historically favourable payment terms.
Iran had historically offered India credit periods of 60-90 days, compared with around 30 days typically extended by several other suppliers.
India resumed receiving Iranian oil earlier after a temporary easing of US restrictions helped address supply concerns.
Before sanctions disrupted trade in 2019, Iran was a significant supplier to India. At its peak, Iranian crude accounted for around 11.5 per cent of India’s total crude imports, according to Kpler data.
India, the world’s third-largest oil importer and consumer, had largely stopped purchases from Tehran following US pressure and sanctions.
Alternative currencies already shape India’s energy trade
Iran’s emphasis on currency flexibility also mirrors broader shifts already visible in global energy trade.
India has previously settled some Russian oil transactions using a combination of currencies, including rupees, dollars, dirhams, yuan and, in certain cases, roubles.
India’s experience shows that oil trade is increasingly adapting to sanctions and banking constraints through multi-currency settlement models rather than relying solely on the US dollar.
For India, settling trade in rupees helped maintain import continuity when conventional payment routes became difficult. For exporting countries, however, holding large balances in local currencies can present challenges if those funds cannot be easily redeployed.
(With agency inputs)
