According to western media on October 19, the Venezuelan government reiterated on October 16 that it would stop using us dollars in domestic foreign exchange transactions, a measure announced more than a year ago in response to us sanctions against Venezuelan institutions and officials.
Venezuela will use euros and other convertible currencies for all foreign exchange transactions in the country, the vice President of economic affairs of the council of ministers and the minister of production, Elena azami, told media on Thursday.As early as in September 2017, Venezuela had announced it would implement the same measures.The government said at the time that it was moving toward a new international payment mechanism to replace the dollar: using a basket of renminbi, Russian ruble, yen, euro and Indian rupee.
Elena azami stressed that the United States is more and more severe economic and financial sanctions, especially for venezuela use dollars payment barriers in international trade, the government decided in the future will go on sale in domestic foreign exchange market and foreign exchange system used in other currencies, including the euro, the yuan trading and settlement.
He also said the U.S. measures are illegal and arbitrary and violate international law.
"The foreign exchange business has been hit No country other than Cuba has been subjected to a diversification attack of this magnitude before." Venezuela has reportedly imposed strict foreign exchange controls since 2003, limiting access for business owners and individuals to the foreign exchange they need to buy raw materials, medicines and food. Official foreign exchange transactions in venezuela are now run through an auction system and have not traded in dollars for months.
Elena azami said the government would spend 2 billion euros on the country's foreign exchange market in November and December to ensure the needs of domestic producers and people were met.In addition, the statutory reserve ratio for domestic Banks will be raised from 31 per cent to 40 per cent to reduce illegal market exchange rate speculation. Venezuela has been suffering a severe economic crisis for five years, the report said, and the consequences of the crisis have emerged as shortages of all kinds of necessities and hyperinflation.
In response to the crisis, Venezuelan President nicolas maduro announced two months ago measures including tax reform, controls on basic food prices and a 35-fold increase in the minimum wage.
