Arabic AR Chinese (Simplified) ZH-CN English EN French FR German DE Japanese JA Portuguese PT Russian RU Spanish ES Ukrainian UK

Dropping the dollar: Venezuela lists oil price in Chinese yuan

Latest news

    View the original article: https://www.rt.com/business/403577-dropping-dollar-venezuela-oil-yuan/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

    In response to sanctions from Washington, Venezuela has started reporting its oil prices in Chinese yuan, going against the international trend of listing prices in US dollars.

    On Friday, the weekly Oil Ministry bulletin published its prices for September in yuan, rather than the US dollar. The price-per-barrel posted on Friday was 306.26 yuan, or $46.76 on the more commonly-used exchange rate, up from last week’s price of 300.91 yuan, or $46.15.

    Read more

    Petrodollar end looming as China & allies dump it in oil trading - Jim Rogers

    “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.

    The decision to move to Chinese currency was made last week as a way to get around the sanctions imposed on Venezuela by the US government in August, which froze some Venezuelan assets and prohibited American citizens from doing business with the country.

    This has hurt Venezuela’s oil exports at a time when the country is facing a severe economic crisis. At the time, the White House said the sanctions were “carefully calibrated to deny the Maduro dictatorship a critical source of financing”.

    “The market is dominated by transactions with the US dollar, and we must develop other ways to conduct international transactions,” Finance Minister Ramon Lobo told VTV earlier.

    Read more

    The BRICS strike back

    Venezuela’s decision follows plans announced by China to start a crude oil futures contract priced in yuan and convertible into gold, which could lead to the emergence of a new Asia-based crude oil benchmark.

    As China is the world’s biggest crude buyer, the new contract may allow exporters to bypass American sanctions by trading oil in yuan, something that has interested countries such as Russia and Iran.

    “In 2012, Iran began to accept yuan for its oil and gas payments, followed by Russia in 2015,” political writer Dan Glazebrook wrote in a column for RT in June.

    “If this takes off, this could literally spell the beginning of the end of US global power. The dollar is the world’s leading reserve currency, in the main, only because oil is currently traded in dollars. Countries seeking foreign exchange reserves as insurance against crises within their own currencies tend to look to the dollar precisely because it is effectively ‘convertible’ into oil, the world’s number one commodity.”

    In the same category are

    Syrian govt condemns ‘Turkish aggression on Afrin’ as defiant Kurds vow to resist The Syrian government has condemned "Turkish aggression on Afrin" following the operation launched by Ankara. Kurdish YPG forces responded by saying t...
    World first: Frenchman undergoes second face transplant A Frenchman whose body rejected a face transplant has become the first person in the world to undergo the procedure a second time. The unnamed man in ...
    At least 2 dead, dozens injured in Prague hotel fire At least two people died and dozens more were injured in a fire that broke out in a hotel in the center of Prague, Reuters report citing Czech rescue ...
    Asteroid the size of Burj Khalifa is heading towards Earth A “potentially hazardous” asteroid, larger than the world’s tallest building, is heading towards Earth at a speed of 76,000 miles per hour. Asteroid 2...
    ‘No substitute for US in Israeli-Palestinian peace process’ – Netanyahu The US is the only party that can serve as mediator in the Israeli-Palestinian conflict, Israeli PM Benjamin Netanyahu has said after Palestinian Pres...
    US may overtake Russia & Saudi Arabia as world’s leading energy producer – IEA The current year promises to be record-setting for the US. Analysts at the International Energy Agency (IEA) expect the country to overtake Russia and...

    Leave a comment

    Your email address will not be published. Required fields are marked *