The Financial Express of India said some payments were being routed through Dubai. But with the UAE tightening its rules on dealings with Iran, that door is now closing. India would like to copy the practice in Japan, South Korea and China of paying for its Iranian purchases in its local currency to a local bank, from which Iranian importers could then make payments for local products. The problem is that—unlike in China, South Korea and Japan—Iran buys next to nothing from India and can’t use all the rupees that would pile up.
