Venezuela Reports Oil Prices in Chinese Currency, Shunning the ‘Tyranny of the Dollar’
ECONOMICS, 18 Sep 2017
Following the imposition of U.S. sanctions, Venezuela has quoted its oil prices in the Chinese Yuan, going against the global norm.
16 Sep 2017 – Venezuela, the country with the largest oil reserves in the world, began on Friday [15 Sep] to report its crude oil prices in the Chinese Yuan, bucking the oil market norm of pricing in the U.S dollar.
“This format is the result of the announcement made on September 7th by the President (Nicolas Maduro)… that Venezuela will implement new strategies to free the country from the tyranny of the dollar,” the Venezuelan Oil Ministry said in a statement after the price bulletin was posted.
The decision to operate with Chinese currency was announced last week as a way for the country to overcome the negative impact of financial sanctions imposed by the United State government of President Donald Trump against Venezuela. The U.S. has claimed its sanctions are intended to “deny the Maduro dictatorship a critical source of financing.”
Vzla responde geopolíticamente a las sanciones gringas cotizando su crudo en yuanes. Acelera el cambio de alineación financiera de la región
— William Serafino (@williamserafino) September 15, 2017
Twitter above: “Venezuela responds geopolitically to the gringo’s sanctions, by quoting its crude prices in yuans. This accelerates the shift of financial alignment in the region.”
“The market is dominated by transactions with the U.S: dollar, and we must develop other ways to conduct international transactions,” the Finance Minister, Ramon Lobo said to VTV last weekend.
Venezuelan government officials have said that under the regime of the new sanctions, servicing debts and import payments on goods has become significantly more difficult, as U.S. banks are refusing to receive public funds. This has also affected the state oil company, PDVSA’s ability to sell crude on the market.
The price per barrel posted on Friday was 306.26 yuan, which exchanges to US$46.76 according to the bulletin. Last week’s price was 300.91 yuan, or US$46.15 yuan.
DISCLAIMER: The statements, views and opinions expressed in pieces republished here are solely those of the authors and do not necessarily represent those of TMS. In accordance with title 17 U.S.C. section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. TMS has no affiliation whatsoever with the originator of this article nor is TMS endorsed or sponsored by the originator. “GO TO ORIGINAL” links are provided as a convenience to our readers and allow for verification of authenticity. However, as originating pages are often updated by their originating host sites, the versions posted may not match the versions our readers view when clicking the “GO TO ORIGINAL” links. This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.
Click here to go to the current weekly digest or pick another article: