By Micah Halpern
I've Been Thinking:
Yesterday India paid Iran $700 million. It was the second of 2 installments totaling $1.4 billion.
Iran has been providing oil to India - however, under the sanctions, India could not pay them. But now they are paying. Iran is India's seventh largest supplier of oil. Before 2013 when sanctions kicked, in Iran was their number two.
Even during sanctions India found a way through a back door bank in Turkey so that they could continue paying Iran, but that was discovered and blocked.
India has deposited another 170 billion rupees which is equivalent to $2.6 billion in their own UCO bank which is, of course, headquartered in India. This money will also be transferred to Iran.
There is one snag.
India will not convert the rupees into dollars and Iran wants dollars.
I know it sounds backwards. Why does Iran, the nation pit against the United States want US dollars? Iran is the nemesis of the US.
There is no other nation in the world --- not North Korea and not Cuba - that has that distinction.
The answer to why Iran wants US dollars is clear. Iran does business in a world that honors the greenback. They want the dollar to support their economy.
Micah@MicahHalpern.com
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