Refiners Asked to Buy Dollars, Euros to Settle Iran Oil Dues

New Delhi: The government has asked refiners that owe billions of dollars to Iran for oil imports to build up dollar and euro balances to avoid downward pressure on the rupee if western powers and Tehran reach a final nuclear deal.

Local refiners owe about $6.5 billion to Iran, equivalent to 55 per cent of their oil bill, after a route to pay for Iranian oil through Turkey's Halkbank was stopped in February 2013 by western sanctions.

"The refineries may buy forex in the spot/forward market in an incremental manner so as to build up the required dollar/euro balance," according to an Oil Ministry letter dated June 11 that was seen by Reuters.