Home / Economy / Venezuela Just Stopped Accepting US Dollars for Oil As Countries Join Forces to Kill US Petrodollar

Venezuela Just Stopped Accepting US Dollars for Oil As Countries Join Forces to Kill US Petrodollar

By Jay Syrmopoulos

In what is the latest pierce to criticise the majestic universe sequence confirmed by the United States, which is underpinned by use of the petrodollar as the universe haven currency, the Wall Street Journal reports that Venezuelan President Maduro has strictly followed by on his hazard to stop usurpation US Dollars as remuneration for wanton oil exports in the arise of new US sanctions.

Last Thursday, President Nicolas Maduro pronounced that if the US went forward with the sanction, Venezuela would “free” itself from the US Dollar.

According to Reuters:

“Venezuela is going to exercise a new complement of general payments and will create a basket of currencies to free us from the dollar,” Maduro pronounced in a multi-hour residence to a new legislative “superbody.”


Unsurprisingly, Maduro remarkable that his country would demeanour to the BRICS countries, and start using the Chinese yuan and Russian ruble instead — along with other currencies — to bypass the US Dollar stranglehold.

“If they pursue us with the dollar, we’ll use the Russian ruble, the yuan, yen, the Indian rupee, the euro,” Maduro said.

Rather than work diplomatically with other nations, the United States mostly uses sanctions to force compliance. Due to the dollar being supposed as the world’s haven currency, almost all financial sell are denominated in dollars. This materialisation gives the US a absolute arms to swing against states that exclude to follow US directives, and underpins the unipolar indication of global mastery exercised by the US.

The Wall Street Journal reports that as a means of circumventing U.S. sanctions — Washington’s elite arms of choice to force correspondence — Venezuela has told oil traders that it will no longer send or accept payments in dollars, according to people informed with the new policy.

Oil traders who trade Venezuelan wanton or import oil products into the country have begun converting their invoices to euros.

The state oil company Petróleos de Venezuela SA, famous as PdVSA, has told its private corner venture partners to open accounts in euros and to modify existent cash land into Europe’s categorical currency, pronounced one devise partner.

The new remuneration policy hasn’t been publicly announced, but Vice President Tareck El Aissami, who has been blacklisted by the U.S., pronounced Friday, “To fight against the mercantile besiege there will be a basket of currencies to acquit us from the dollar.”

With Europe mostly behaving as zero some-more than a bondman to the United States, it’s not inconceivable that the American lapdog EU could levy sanctions on Venezuela, which would likely pave the way for the vital Russia–China partnership to benefit an even stronger foothold in the global mercantile battle, as it would likely curt the Yuan, Ruble, and bullion being used to buy and sell Venezuelan oil.

Interestingly, the decision by Venezuela – the republic with the world’s largest proven oil pot – comes just days after China and Russia denounced an Oil/Yuan/Gold devise at the new annual BRICS conference. This devise would strongly criticise the hegemonic control the US enjoys over the global financial system.

During the BRICS conference, Putin denounced a geopolitical/geoeconomic bombshell as he forwarded the idea of a “fair multipolar world.” He emphasized a position “against protectionism and new barriers in global trade” — a anxiety to the demeanour in which US operates its sovereignty to say primacy.

Russia shares the BRICS countries’ concerns over the bias of the global financial and mercantile architecture, which does not give due courtesy to the flourishing weight of the rising economies. We are prepared to work together with the partners to promote general financial law reforms and to overcome the extreme mastery of the singular series of haven currencies.

“To overcome the extreme mastery of the singular series of haven currencies” is simply a good way of observant that the BRICS will create a complement to bypass the US dollar, as good as the petrodollar, in an bid to criticise the unipolar model embraced by the United States.

As we formerly reported, China will shortly launch a wanton oil futures agreement labelled in yuan that is entirely automobile into gold.

What this means is that countries who exclude to hook to the majestic will of the United States, i.e. Russia, Iran, etc., will now be means to bypass US sanctions by making appetite trades in their own currencies, or in Chinese yuan – with the believe that they can modify the yuan into bullion as combined incentive/insurance/security.

The yuan will be entirely automobile into bullion on both the Shanghai and Hong Kong exchanges. Typically, wanton oil is labelled in propinquity to Brent or West Texas Intermediate futures, both denominated in U.S. dollars.

“The manners of the global oil diversion may start to change enormously,” pronounced Luke Gromen, founder of U.S.-based macroeconomic investigate company FFTT.

This new model of oil, yuan, and bullion is, but question, an general diversion changer. The pivotal takeaway here is that the US dollar can now be bypassed but so much as a second thought.

Russia and China – around the Russian Central Bank and the People’s Bank of China – have been usually operative on ruble-yuan swaps as a means of hedging against US hegemony.

There is a vital transformation to take these actions over the BRICS, first permitting determined “BRICS Plus” members, then whole Global South to deprive themselves from coherence on the US dollar.

Essentially, Russia and China are operative together to chaperon in a new model of Eurasian integration, something that goes directly against US vital doctrine – which dictates that Russia and China, the United States’ two categorical geopolitical rivals, should never be allowed to browbeat Eurasia.

“In 2014 Russia and China sealed two huge 30-year contracts for Russian gas to China. The contracts specified that the sell would be finished in Renminbi [yuan] and Russian rubles, not in dollars. That was the commencement of an accelerating routine of de-dollarization that is underway today,” according to vital risk consultant F. William Engdahl.

Russia and China are now formulating a new model for the universe economy and paving the way for a global de-dollarization, and Venezuela is just the beginning.

“A Russian-Chinese choice to the dollar in the form of a gold-backed ruble and gold-backed Renminbi or yuan, could start a snowball exit from the US dollar, and with it, a serious decrease in America’s ability to use the haven dollar role to financial her wars with other peoples’ money,” Engdahl concludes.

Make no mistake that the BRICS are not only operative to confederate Eurasia, but to geo-economically confederate the whole Global South under a new multipolar horizon that treats states as equals, regardless of their energy status globally.

The Neolibcons in Washington – focussed on contingent regime change in Russia and China – are in for an intensely bold awakening. Although the BRICS have their own constructional mercantile problems, they have combined a long-term devise that will change the face of geopolitics/geo-economics and reduce the imperialist will of those that wish to foreordain and sequence the universe as they see fit.

The DC War Party’s petrodollar imperialism, which supports the US fight appurtenance and allows for a consistent fight footing, is fast using out of allies to say its global hegemony.

Jay Syrmopoulos is a geopolitical analyst, freethinker, and fervent competition of authoritarianism. He is now a connoisseur tyro at the University of Denver posterior a masters in Global Affairs and binds a BA in International Relations. Jay’s essay has been featured on both mainstream and eccentric media – and has been noticed tens of millions of times. You can follow him on Twitter @SirMetropolis and on Facebook at SirMetropolis.

Image Credit: The Anti-Media

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