Based on information from Reuters, Venezuela’s national oil company, PDVSA, is moving more toward using the digital currency Tether (USDT) for its crude and fuel exports as the U.S. reinstates sanctions on Venezuelan oil. Three sources familiar with the situation told Reuters that PDVSA is hastening its transition to Tether in order to minimize the risk of having sale revenues frozen in foreign banks due to U.S. actions.
According to Reuters, the US Treasury Department has chosen not to renew a general permit for PDVSA’s business partners, requiring them to conclude their dealings by May 31st. This action is predicted to make it harder for Venezuela to boost its oil production and sales since companies must now obtain individual approvals from the US to trade with the country.
According to Reuters, PDVSA has been gradually shifting some oil sales towards Tether (USDT) since last year. Tether is a digital currency that’s pegged to the US dollar and is intended to keep its value stable. While the US dollar is still widely used in global oil transactions, cryptocurrency payments are starting to appear in certain countries, even if they’re not common yet.
Pedro Tellechea, Venezuela’s oil minister, shared with Reuters that PDVSA, their state-owned oil company, uses various currencies as outlined in contracts. In certain instances, Tether (USDT) is chosen as the preferred payment method. Despite encountering difficulties due to U.S. sanctions, Venezuela’s oil exports have thrived under Tellechea’s guidance, peaking at approximately 900,000 barrels per day in March 2024 – the highest level in the past four years.
According to Reuters, PDVSA shifted several oil deals without swaps, as mentioned in the article, from being settled on the spot market to utilizing a contract model requiring payment of half the cargo value upfront in Tether (USDT) by the end of Q1 2024. Furthermore, Reuters noted that new customers wishing to engage in oil transactions with PDVSA must now keep Tether (USDT) in a digital wallet, even for contracts not explicitly stating its use.
Reuters reports that due to PDVSA’s growing use of Tether (USDT), it has had to collaborate with intermediaries to fulfill digital transaction conditions, as many traders’ compliance teams have not endorsed USDT transactions. This trend has gained popularity since the United States implemented secondary sanctions against Venezuela in 2020, thereby straining the country’s connections with significant trading partners.
According to Reuters, PDVSA may evade sanctions by using intermediaries for transactions; however, this approach would result in fewer oil revenues going directly to the company. Nonetheless, Minister Tellechea remains hopeful about PDVSA’s future, emphasizing to Reuters that the company possesses strong trading capabilities and is well-prepared commercially to face the reinstatement of US sanctions.
Read More
- Will MCU’s Blade Movie Be Rated-R Following Deadpool & Wolverine’s Rating? Kevin Feige Reveals
- ZRO PREDICTION. ZRO cryptocurrency
- Sakamoto Days Chapter 176 Will Likely Return To The Present; Release Date, Where To Read And More
- Guy Fieri Meets Flavor Flav As They Support U.S. Women’s Water Polo Team At 2024 Paris Olympics
- From Aaron W. Reed To Vinnie Jones: All The Actors Who Played Juggernaut So Far
- House Of The Dragon To Reportedly End With Season 4; Season 3 Shooting Schedule Explained
- How Responsible Is Matthew Perry’s Assistant For His Death? Here’s What Legal Experts Has To Say
- Millie Bobby Brown’s Nineteen Steps Set To Get Big Screen Adaptation; Know More Here
- USD HKD PREDICTION
- IQ PREDICTION. IQ cryptocurrency
2024-04-23 10:39