In
what is set to be a major blow to the U.S.’ increasingly fragile
“petrodollar” system, Venezuela announced on Wednesday that it
would no longer accept U.S. dollars as payment for its crude oil
exports. According to the Wall Street Journal, Venezuela has begun
using euros in lieu of the dollar and will convert existing cash
holdings into euros as well.
However,
the official website of Venezuela’s state oil company, PDVSA, has
begun offering prices in the Chinese yuan, not euros. The decision is
similar to that once made by former Iraqi leader Saddam Hussein, who
dropped the dollar in favor of the euro a few years prior to the 2003
U.S. invasion of Iraq.
The
move, though drastic, was not entirely unexpected. Venezuelan
President Nicolás Maduro had stated earlier in the month that the
country would look to “free” itself from the dollar within a
week’s time, following the U.S.’ sanctions against the embattled
nation.
Full
report:
Comments
Post a Comment