Iran has resolved an oil-payments dispute with India by switching from euros and dollars to other currencies, a top Iranian oil official was quoted as saying Friday, after the spat threatened to disrupt the Islamic republic's crude sales to Asia's third-largest economy. But a spokeswoman for India's central bank neither denied nor confirmed a solution has been found
Iran has resolved an oil-payments dispute with India by switching from euros and dollars to other currencies, a top Iranian oil official was quoted as saying Friday, after the spat threatened to disrupt the Islamic republic's crude sales to Asia's third-largest economy.

But a spokeswoman for India's central bank neither denied nor confirmed a solution has been found.

India has tried to work out an alternative mechanism for payments to Iranian companies after the Reserve Bank of India last week closed the Asian Clearing Union route, a move which effectively stops settlements in U.S. dollars and the euro.

Speaking to Iran's Fars News agency, Ahmad Khaledi, Iran's deputy oil minister for international affairs, said "the surplus trade between India and Iran, of which oil is an important part, was in euros and dollars.

"In order to prevent Americans and Europeans creating trouble for [oil sales], we switched to other currencies like the Japanese yen, the Emirati dirham, or other monetary units," he said.

A spokeswoman with the Reserve Bank of India said a "meeting [between Iranian and Indian officials] is going on" and a press briefing is due later Friday. She declined to comment further.

Officials with Iran's central bank didn't return a request for comment. An official with the Asian Clearing Union couldn't immediately comment.