MNI BOK WATCH: More Evidence Needed To Cut Rates, Says Rhee

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.1339 THURS VS 7.1342

MNI BRIEF: Bank of Korea Keeps Policy Rate At 3.50%

Activity data stronger-than-expected; little impact on near-term monpol

MNI: GERMANY JUNE FINAL HICP +2.5 % M/M, +0.2% Y/Y

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Venezuela Looking at Crypto Shift as Oil Sanctions Return: Reuters

OIL
Energy BulletsHomepageBulletCommodities

Venezuela’s PDVSA plans to increase digital currency usage in its crude and fuel exports as the US reimposes oil sanctions, according to Reuters.

  • The US reimposed sanctions from April 18 after it said Venezuela’s government had failed to make the necessary steps towards free and fair elections.
  • By the end of Q1, Venezuela had moved to spot deals not involving swaps to a contract model demanding prepayment of half the cargo value in USD.
  • Any new customer must also now hold cryptocurrencies in a digital wallet.
  • Sources told Reuters that transactions in USDT (cryptocurrency) do not pass traders’ compliance departments, so will require middlemen. Intermediaries were a key part of the Venezuelan trade under sanctions.
  • While this strategy could help circumvent sanctions, it will mean it receives a smaller proportion of oil sales, and likely at discounted prices.
138 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Venezuela’s PDVSA plans to increase digital currency usage in its crude and fuel exports as the US reimposes oil sanctions, according to Reuters.

  • The US reimposed sanctions from April 18 after it said Venezuela’s government had failed to make the necessary steps towards free and fair elections.
  • By the end of Q1, Venezuela had moved to spot deals not involving swaps to a contract model demanding prepayment of half the cargo value in USD.
  • Any new customer must also now hold cryptocurrencies in a digital wallet.
  • Sources told Reuters that transactions in USDT (cryptocurrency) do not pass traders’ compliance departments, so will require middlemen. Intermediaries were a key part of the Venezuelan trade under sanctions.
  • While this strategy could help circumvent sanctions, it will mean it receives a smaller proportion of oil sales, and likely at discounted prices.