Venezuelan authorities presents cryptocurrency Petro to the OPEC | Finance and Markets

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Venezuelan authorities will present to the OPEC countries their cryptocurrency Petro, as a means of payment, revealed the Venezuelan Oil Minister Manuel Quevedo.

“We will use the Petro in OPEC as a safe and reliable currency to sell our oil in the world”, said Manuel Quevedo. “We will introduce the Petro in the first quarter of 2019 as the world’s oil trading currency, selling all of our production in it”, said the Venezuelan Oil Minister.

By early November, the oil production in Venezuela was 1.2 million barrels per day. According to the forecasts of the International Energy Agency at the end of the year, the yield may drop to 1 million barrels per day.

The sales of the Venezuelan cryptocurrency Petro started in February 2018. Its value is equaled to the price of domestic oil and is close to 60 USD.

In recent years, the Latin American country has experienced a severe social-economic crisis. According to estimates by the parliamentary Finance Committee in August, annual inflation has exceeded 200,000%, and the International Monetary Fund (IMF) forecasts the benchmark to reach 1 million percent by the end of the year.

On August 20, the government denominated the currency by removing five zeros from the banknotes and tying the new currency, the Sovereign Bolivar, which is linked to the Venezuelan cryptocurrency Petro. Its value is equaled to the price of a barrel of domestic oil and equals about 60 USD.

Before that, Nicolas Maduro announced the increase of the minimum wage from September 1st to 1800 sovereign bolivarians (180 million in the old course) or 0.5 Petro. Business executives criticized this decision, arguing that its implementation could in practice lead to a collapse of the manufacturing sector.