Iran to sell oil, gas in local currency rather US dollars

Iran is likely to begin selling oil and gas in rials instead of US dollars, following the Russian example, which will most likely be bound to gold. The Iranian move would be a further setback for the US dollar, which has been the long-favoured currency for international commerce.

Late last month the Russian government had taken a decision to sell oil and gas in roubles or gold. The Russian Central Bank declared that the Russian rouble will be pegged to gold from March 28, 2022. The bank established a price of 5,000 roubles for one gram of gold.

This is substantially less expensive in roubles than it is in dollars. Iran, too, is said to be focused on lowering the rial-to-gold exchange rate below the dollar-to-gold rate. Iran has begun informing its major importers of the decision. India is one such purchaser and Iran is keen on reactivating the rupee-rial trade agreement with the country.

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According to The New Indian Express, Iran may soon announce a favourable rial-gold exchange rate, which would encourage the purchase of oil and gas in rial or gold.

However, it is yet to communicate with the Indian government, which, according to sources, is not opposed to such a transaction. “India is assessing the benefits and drawbacks.”

“A rupee-rial transaction would result in massive monetary gains. But we must also consider the reaction in the United States. It is already boiling over with rage at our agreement with Russia,” TNIE quoted a government source.

India abstains in UN General Assembly on vote to suspend Russia from UNHRC:

India on Thursday abstained in the UN General Assembly on a vote moved by the US to suspend Russia from the UN Human Rights Council over allegations that Russian soldiers killed civilians while retreating from towns near the Ukrainian capital Kyiv.

The 193-member General Assembly voted Thursday on the draft resolution titled Suspension of the rights of membership of the Russian Federation in the Human Rights Council’.

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