Sunday 17 January 2021

Adiós gringo? Venezuela & Russia negotiating swap of US dollar for ruble in bilateral trade

Venezuela is in talks with Russia over the possibility of using the Russian ruble in mutual trade settlements and abandoning U.S. dollar transactions, according to Venezuela’s representative to the UN office in Geneva, Jorge Valero.

© AFP / Alexander Nemenov

The ambassador added that the countries are also discussing the use of Venezuelan state-sponsored oil-backed cryptocurrency, the Petro, launched last year.

Venezuela pegged the value of the Petro to the price of one barrel of Venezuelan oil. The government also pegged Venezuela’s national currency, the Bolivar, to the Petro last summer.

- Advertisement -

Numerous sanctions introduced against Venezuela by the United Stats have forced the Venezuela to stop using the U.S. dollar for its international transactions. It switched to the Euro last October. In addition, the country started swapping crude oil for imported products.

Venezuela is currently trying to get over one of the worst economic crises in history with hyperinflation heading for 10,000,000 percent this year, according to the forecast by the International Monetary Fund (IMF).

Valero added that Venezuela counts on the Kremlin’s support in restructuring Venezuela’s foreign debt.

The diplomat stressed that the U.S. penalties against the Venezuelan oil sector, along with freezing its dollar accounts, has had an enormous negative impact on the country’s economy. The measures deprived the country of free access to international financial support and investments in its oil sector.

- Advertisement -

 

Article originally appeared on Today Venezuela and is republished here with permission.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Q24N
Q24N is an aggregator of news for Latin America. Reports from Mexico to the tip of Chile and Caribbean are sourced for our readers to find all their Latin America news in one place.

Related Articles

JetBlue newest plane with fewer rows of three seats

Q TRAVEL - JetBlue, the New York-based carrier, known for making...

Banco Central faces 2021 with less room to intervene in the exchange market

QCOSTARICA - After spending about one billion dollars last year, the...

MOST READ

JetBlue newest plane with fewer rows of three seats

Q TRAVEL - JetBlue, the New York-based carrier, known for making flying in economy actually enjoyable, again, took a step forward in aviation with...

Study: masks and vehicle restriction were the most effective against Covid-19 in CR

QCOSTARICA - When implemented together, the mandatory use of masks and vehicle restriction were the most efficient measure to reduce hospitalizations for Covid-19, according...

Ford announces the closure of its factories in Brazil

Q24N - Ford Motor Co announced this Monday, January 11, the end of all its vehicle production operations in Brazil, in 2021, as part...

Strong winds and cooler weather expected this weekend

QCOSTARICA - The indirect effect of cold push No. 11 will mean the return of strong gusts this weekend in most of the country. Conditions...

Centenarians of the Nicoya ‘blue zone’ vaccinated against covid-19

QCOSTARICA - Costa Rica's oldest, among some of the oldest in the world, got vaccinated against Covid-19 on Friday, January 15. They are Rainery Fonseca...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.

Article originally appeared on Today Venezuela and is republished here with permission.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.