• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 20 mins Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 4 hours China's Blueprint For Global Power
  • 8 hours IMO 2020:
  • 10 hours World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 4 mins Brexit agreement
  • 18 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 1 hour The Ultimate Heresy: Technology Can't Fix What's Broken
  • 15 hours Why did Aramco Delay IPO again ? It's Not Always What It Seems.
  • 18 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 11 hours Deepwater GOM Project Claims Industry First
  • 18 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 19 hours PETROLEUM for humanity 
A Major Buy Signal For Natural Gas Futures

A Major Buy Signal For Natural Gas Futures

After weeks of an unpredictable…

The End Of The Asian Oil Product Glut

The End Of The Asian Oil Product Glut

Trafigura, one of the world’s…

PDVSA To Start Using ‘El Petro’ Next Week

Petro

Venezuela’s state-owned oil company PDVSA will start using the local cryptocurrency El Petro for all its transactions on August 20, President Nicolas Maduro said, as quoted by Sputnik. The president did not mention whether PDVSA’s business partners agreed with the change. Yet the shift to a cryptocurrency in all of PDVSA’s business dealings is only part of a much bigger monetary overhaul.

From August 20, the petro will begin to be used in parallel with the national currency the bolivar, and its prices will be pegged to that of the bolivar. Maduro said that the central bank will start issuing daily exchange rates for the two as well.

Last December, Maduro shocked analysts who follow both the country’s flirtations with default and the cryptocurrency community by announcing that Venezuela would launch the petro cryptocurrency, backed by oil, diamonds, and gold reserves, to help the country to “advance in issues of monetary sovereignty, to make financial transactions and overcome the financial blockade.”

The cryptocurrency was launched in February this year despite opposition from parliament. The digital currency will be backed by Venezuela’s oil and gold reserves. During the presale period alone, according to Maduro, the petro, which has already been sanctioned by Washington, generated US$6 billion in proceeds.

Related: Global Oil Supply Could Become ‘’Very Challenging’’

The Venezuelan economy, however, has continued to deteriorate with thousands of people leaving for neighboring Colombia and Ecuador every day, prompting the Ecuadorian authorities to declare a state of emergency in several provinces.

Meanwhile, Caracas has decided to knock off five zeroes from the bolivar as hyperinflation races ahead. How this will help matters remains unclear, but there is precious little else the government could do. Maduro, however, said during the presentation of the monetary reform that thanks to the addition of the petro to the national currency and the other changes this will entail, Venezuela will recover by 2020 as “a new economic model” is developed.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play