After Rs 3500 crore currency swap deal with UAE, now Modi govt signs pact with Iran for payment in terms of rupee

Nothing can compare PM Modi diplomacy skills. It is above all. With his pragmatic approach India has now reached new heights and the whole world acknowledges his calibre

After exchanging rice for oil with Iran, India has now signed pact with Iran for payment in terms of rupee for the crude oil it imports from the Persian Gulf nation.

The Memorandum of Understanding (MoU) was signed after the US granted waiver to India and seven other nations to keep buying Iranian oil despite imposing sanctions on importing oil from Iran and warning the nations to buy oil

Earlier, India used to make payment in euros using European banking channels. These channels got blocked from November. Now Indian refiners will make rupee payments in a UCO Bank account of the National Iranian Oil Co (NIOC).

Out of this payment the half funds will be used for settling payments for exports of Indian goods to Iran. India will be exporting products like food grains such as rice, wheat, soybean, medicines, medical devices and consumer products to Iran following the age old Barter Trade System. India has already signed an agreement to export rice in return for oil.

India had won the exemption after cutting imports and escrow payments. Under the 180-day exemption, India is allowed to import a maximum of 300,000 barrels a day of crude oil.

India is the second biggest purchaser of Iranian oil. This master stroke of Modi Government will help India to meet its oil needs as well as will help in strengthening the value of rupee. It will help India and other nation to lessen their dependence on dollar thus weakening the dollar and strengthening the local currencies of nation.

Prime Minister Modi Government is continually taking steps for meeting the oil needs of nation along with keeping a check on that it should not put burden on the shoulders of people of nation.PM Modi is trying his best and contributing passionately at national as well as international level for bringing down the price of crude oil.

Also for strengthening the value of rupee he is urging nation to trade in local currencies. Till now India has signed currency swap agreements with Japan, Russia, UAE and Iran to trade in local currency. It is eyeing 23 countries including China to deal in local currencies to reduce dollar impact on Forex Reserves.

This is power of Narendra Modi and his Diplomacy. You too are the contributor in development of India as it is you who have choosed PM Modi as their leader. Keep voting for PM Modi if you want to see India touching greater heights.

Source : Financial Express

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