First-of-its Kind: Indian Currency Paid For Oil Imports!

India is not the strongest currency in the world. In general, the currency is doing ok. But the situation is different when we compare it to other currencies. However, this is not stopping the country from making big achievements be it the size of the economy or expanding the payments range.

In what could be a groundbreaking decision, India came aside from the trend of paying US dollars for oil sales. For a very long time, oil payments have been made in dollars as it is the most widely held currency across the globe. No matter where the sales happen the US currency is used.

However, India used its currency to pay for the oil sales. For the crude oil, imported from the United Arab Emirates (UAE), India paid in rupees. This can be seen as a big development in helping the Indian currency which is trading at its highest low against the US dollar.

Earlier this year, India and the UAE landed a deal to use Indian currency for the transactions. With this, the Indian Oil Corporation (IOC) used our currency to pay the amount for importing crude oil from the Abu Dhabi National Oil Company (Adnoc).

This can be a game-changer decision for a nation like India which depends more on imports for its needs. It is known that India has been a big player in the global imports of oil. Given the size of the nation, India imports oil from various nations and UAE is one of the platforms.

Of late India has been making such groundbreaking decisions. Earlier India made a portion of payments to Russia for the oil in Indian currency. Now it has done the same with the UAE. If everything goes well India might push the Indian rupees payment further.