MercoPress, en Español

Montevideo, October 17th 2017 - 13:16 UTC

Venezuela “free of the dollar tyranny” publishes oil and fuel prices in Chinese Yuan

Tuesday, September 19th 2017 - 09:48 UTC
Full article 4 comments
Maduro last week said his government would shun the dollar after the United States announced sanctions that blocked certain financial dealings with Venezuela Maduro last week said his government would shun the dollar after the United States announced sanctions that blocked certain financial dealings with Venezuela

Venezuela published the price of its oil and fuel in Chinese currency on Friday in what it called an effort to free the socialist-run country from the “tyranny of the dollar,” echoing a plan recently announced by President Nicolas Maduro.

 Maduro last week said his government would shun the dollar after the United States announced sanctions that blocked certain financial dealings with Venezuela on accusations that the ruling Socialist Party is undermining democracy.

The global oil industry overwhelmingly uses the dollar for pricing of products.

A weekly Oil Ministry bulletin published on Friday listed September prices in Yuan, while including prices from previous weeks and months in dollars.

“This format is the result of the announcement made on Sept 7 by the president ... that Venezuela will implement new strategies to free the country from the tyranny of the dollar,” the ministry wrote in a statement released after the bulletin.

Venezuela’s Yuan-based prices appear to be the result of multiplying dollar prices by the dollar/Yuan exchange rate.

The price per barrel for the week ending Friday was 306.26 Yuan, equivalent to US$46.76 based on the exchange rate listed in a footnote. That is up from the previous week’s price of 300.91 Yuan, or US$46.15 based on the corresponding exchange rate.

“Nobody is changing contracts for now,” said one oil trader consulted about the issue who asked not to be identified.

Venezuela’s Dicom currency system last week temporarily suspended the sale of dollars in order to incorporate other currencies.

Late socialist leader Hugo Chavez during his 14-year rule repeatedly vowed to back away from the dollar, which he said was being printed indiscriminately and was destined to lose its place as the world’s dominant currency.

But Venezuela remains dependent on the greenback given that it conducts ample commercial trade with the United States both through exports of oil and imports of U.S. food and consumer products.

Top Comments

Disclaimer & comment rules
  • Chicureo

    If the Yuan exchange fails, perhaps Maduro could consider using bunny rabbits as a currency instead...

    Sep 19th, 2017 - 12:54 pm +3
  • Chicureo

    Hi as well.
    The Zimbabwean Dollar as other sad cases of hyperinflation lacked good governerance of their respective economies. It would all be so hilarious if it was not so truly be so sad for the people suffering.

    Sep 20th, 2017 - 08:38 pm +1
  • imoyaro

    @Chicureo

    Good to see you again! Actually I thought the would choose the Zimbabwean Dollar as the base for their currency. At least it would be easier to do the math... ;)

    Sep 20th, 2017 - 09:39 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!