Service firms ‘mull Chinese currency payment offer’ from sanctions-hit Venezuela
- Government and state oil company suggest paying suppliers and contractors in yuan accounts in China as Caracas tries to cope without access to the US financial system
The move made in recent months is the latest example of how Caracas has sought new ways of making international payments since sweeping sanctions by Washington, intended to force out socialist President Nicolas Maduro, cut off the country’s access to the US financial system.
Officials made the proposal verbally to at least four companies that provided services to the public sector, said the people, including two government officials and three sources from private companies in the financial or oil sectors. The individuals declined to disclose which companies had been approached.
The companies were evaluating the proposal, the sources said. Reuters could not determine whether any such payments in yuan had been made.
China’s central bank, the People’s Bank of China, did not respond to a faxed request for comment. PDVSA, Venezuela’s central bank, and Venezuela’s information ministry did not respond to requests for comment.
Venezuelan public entities have traditionally paid private sector partners in the local bolívar currency or US dollars. But hyperinflation and US sanctions, which prohibit American companies from doing business with Venezuela’s public sector, are complicating those methods.