Venezuela hits back at US, lists oil prices in Chinese yuan

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Venezuela on Friday began listing the price of its oil in the Chinese yuan for the first time, following President Nicolas Maduro's announcement last week that he would rid the economy of the "US imperialist system."

The country's Oil Ministry listed the week's closing price per barrel at 306.26 yuan on its website, equivalent to 46.7 US dollars, up from 300.91 yuan the week before.

“As of the current week, the average price for Venezuelan (oil and fuel) will be listed in Chinese yuan,” according to a footnote to the table of rates published each Friday by the country’s Oil Ministry.

The move was seen as a fight against US-imposed sanctions on the embattled country when the global oil industry overwhelmingly prices products in US dollar.

Washington's tough new sanctions on Caracas bar US banks from trading in new bonds issued by the government or the state-run oil company PDVSA. The goal is to restrict Venezuela's access to vital bond and equity markets.

Last Friday, President Maduro said he decided to start selling oil, gas and all other products with new currencies other than US dollar and Chinese yuan is in his list, noting "an economy free from the US imperialist system is possible."

President Maduro said that the sanctions amounted to a financial and economic blockade, as rating agency Fitch downgraded Venezuela and warned default was now likelier.

The country has to make 3.8 billion US dollars in debt payments in October and November, while its foreign currency reserves have sunk under 10 billion US dollars.

Source(s): AFP ,Reuters