''Iran accepts renminbi for crude oil''

From FT.com
By Henry Sender

''Iran is accepting renminbi for some of the crude oil it supplies to China, industry executives in Beijing and Kuwait and Dubai-based bankers said, partly as a consequence of US sanctions aimed at limiting Tehran’s nuclear programme.

Tehran is spending the currency, which is not freely convertible, on goods and services imported from China.

.....much of the money is transferred to Tehran through Russian banks, which take large commissions on the transactions, these people said.

Beijing has been trying to get its trading partners to use the renminbi, in effect transferring the exchange rate risk to its counterparties, since the price of crude is set in US dollars. It also frees Beijing of the need to hold as many dollars in its reserves.''

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