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(zerohedge.com)-Venezuelan President Nicolas Maduro said Thursday that Venezuela will be looking to “free” itself from the U.S. dollar next week, Reuters reports. According to the outlet, Maduro will look to use the weakest of two official foreign exchange regimes (essentially the way Venezuela will manage its currency in relation to other currencies and the foreign exchange market), along with a basket of currencies.
According to Reuters, Maduro was referring to Venezuela’s current official exchange rate, known as DICOM, in which the dollar can be exchanged for 3,345 bolivars. At the strongest official rate, one dollar buys only 10 bolivars, which may be one of the reasons why Maduro wants to opt for some of the weaker exchange rates.
Soren K. Group
MOSCOW (Sputnik) – Venezuela began publishing prices for its oil in Chinese yuan in a bid to avoid the US dollar and counter US sanctions, the country’s President Nicolas Maduro said.
“We are already pricing [oil] in Chinese yuan … because of the sanctions which were facilitated by [opposition politician] Julio Borges and which were adopted by [US President] Donald Trump. They have caused great damage … And we are forced to defend ourselves,” Maduro said Friday while aired by the Telesur broadcaster.
Maduro has already said in the past that Venezuela was going to free itself from the “vice of dollar.”
Venezuela Begins Publishing Oil Basket Price In Yuan
by Tyler Durden
Two days after the WSJ confirmed Maduro's earlier threat that he would stop accepting US Dollars as payment for crude oil imports, Venezuela has done just that.
As a reminder, and as we reported previously, in an effort to circumvent U.S. sanctions, Venezuela told oil traders that it will no longer receive or send payments in dollars. As a result, oil traders who export Venezuelan crude or import oil products into the country have begun converting their invoices to euros.
Furthermore, Venezuela's state oil company Petróleos de Venezuela SA, or PdVSA (whose bankruptcy is fast approaching), told its private joint venture partners to open accounts in euros and to convert existing cash holdings into Europe’s main currency, said one project partner. The new payment policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., said Friday, "To fight against the economic blockade there will be a basket of currencies to liberate us from the dollar."
Fast forward to today, when according to a statement on the Venezuela oil ministry, the country's weekly crude oil and petroleum basket "will be published in Chinese Yuan" - oddly, not in Euros as the WSJ hinted - going forward. We can only assume that Venezuela avoided the European currency on concerns that Brussels may follow in D.C.'s footsteps and impose financial sanctions on the Maduro regime next. Which meant that the only "safe" currency to transact in, was that of the country's two big sources of vendor (and commodity) financing: China and Russia. For now Venezuela has picked the former.
originally posted by: worldstarcountry
Venezuela is officially pricing its oil in Chinese Yuan...
The country's petroleum ministry listed the week's closing price per barrel at 306.26 yuan on its website, equivalent to $46.7, up from 300.91 yuan the week before.
But economist Cesar Aristimuno said the yuan figure had little meaning beyond reference value, "because at the end of the day, the market continues to be quoted in dollars." Source