In mid-September, Venezuela’s President Nicolas Maduro stated that the country scrapped the US dollar to price its oil blends. The oil ministry has already posted the price list of its oil and fuel in the Chinese yuan.

Citing the President of the socialist-run country, this measure is introduced in an effort to free the domestic oil industry from “the tyranny of the dollar.” This is also done in response to sanctions against Venezuela announced by US President Donald Trump. Nicolas Maduro terms these sanctions unlawful and unfair. At present, a few tankers loaded with Venezuelan crude oil got stuck in US ports as payment for the crude cannot be settled in light of the new sanctions. 

Earlier, Nicolas Maduro unveiled his plans to invoice oil sales in the euros. The state oil company PDVSA requested its partners to settle transactions for oil exports in the single European currency. Traders exporting crude from Venezuela have already converted their accounts in the euro. Caracas aims to evade US sanctions this way. 

In August, US President Donald Trump endorsed a directive on the financial sanctions against Venezuela. According to the directive, the US blocks deals with bonds and securities issued by Venezuela’s government and the state-run company PDVSA. Besides, US companies are banned to make deals with available treasuries from Venezuela’s public sector and dividends to be paid by Venezuela’s government.