Japan Reduces Iranian Dollar Holdings

Japanese oil refiners Cosmo Oil Co. and Japan Energy Corp. have started paying Iran for crude oil imports in yen instead of dollars, company spokesmen said Tuesday.

Iran has been trying to persuade Asian buyers to make payments in non-U.S. currencies to reduce its U.S. dollar holdings, a move that is seen as a response to the dollar's recent weakness and to pressure from Washington to limit Iran's dealings with the U.S. financial system.

The moves by the two companies, as well as a similar step taken in September by Nippon Oil Corp., the Japan's largest refiner, may trigger other Asian refiners to move away from U.S. dollar payment.