According to a report, India's top cement producer is paying for a Russian coal shipment in Chinese currency.
According to a customs document, UltraTech Cement imported 157,000 tons of coal from the Russian far east port of Vanino at a price of about 25 million dollars. The invoice was sent in June.
A currency trader said it was significant. In the last 25 years of my career, I have never heard an Indian entity pay for international trade in Chinese currency. This is a way to circumvent the US dollar.
Other companies have also placed orders for Russian coal with payments in the Chinese currency, according to traders.
India hasn't condemned Russia's invasion of Ukraine, and the two nations have increased their business transactions.
Western sanctions have frozen Moscow's foreign currency holdings and prevented Russia from most of the global financial system.
In March, India and Russia were talking about reviving a rupee payment mechanism that would allow companies in both countries to make deals without dollars.
The US dollar's dominance has been challenged by China.
The Bank for International Settlements and five other nations, including Singapore and Hong Kong, will be involved in the creation of a yuan reserve. Each of the members will make a contribution.
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