Japan okays yen transactions with Iran

A Japanese official says his country will use yen in half of its future crude transactions with Iran as requested by the Islamic Republic.

Head of Japan's Petroleum Association, Fumiaki Watari, noted substituting yen with dollar for half of Japan's transactions is feasible.

Watari who also chairs Nippon Oil Corp. pointed out that the Japanese refining companies are presently working to change the currency unit for their transactions, Shana reported.

Iran has called on the Japanese oil contractors to change the unit of currency in transactions to yen from dollar as a way to counterbalance the US sanctions against the country.

Nippon will also change currency of its transactions into yen. Nippon will be the first Japanese oil company to convert the currency to yen. The new decision will take effect as of October.

Watari reiterated that Iran crude is important for Japan and the Japanese company will study replacing dollar with yen.

Iran is the third largest supplier of Japan's crude after Saudi Arabia and UAE.