Iran to Ditch USD in Oil Trade

Local Editor

In wake of the developments on the level of Iranian economy, media reports talked of Iran's plans to recover tens of billions of dollars it is owed by India and other buyers of its oil in euros.

Reports added that the Islamic Republic is billing new crude sales in euros, too, looking to reduce its dependence on the US dollar following last month's sanctions relief.

Relatively, the country will charge in euros for its recently signed oil contracts with firms including French oil and gas major Total, Spanish refiner Cepsa and Litasco, the trading arm of Russia's Lukoil, according to a source at the National Iranian Oil Company [NIOC].

"In our invoices we mention a clause that buyers of our oil will have to pay in euros, considering the exchange rate versus the dollar around the time of delivery," the NIOC source said.

In the same context, Iran also told its trading partners, who owe it billions of dollars, that it wants to be paid in euros rather than US dollars.

Iran was allowed to recover some of the funds frozen under US-led sanctions in currencies other than dollars, such as the Omani Rial and UAE Dirham.

Back in January 2014, the World Bank's former chief economist called for an initiative for replacing the US dollar with a single global super-currency, saying it will create a more stable global financial system.

Source: News Agencies, Edited by website team