Venezuela will reserve 30 million barrels of oil for material support of Petro
Posted On March 23, 2021
Venezuela Cuts Petro’s Backing from 5B Barrels of Oil to 30M Reuters
Venezuelan President Nicolas Maduro announced that he intends to allocate 30 million barrels of crude oil for the material support of the state cryptocurrency Petro.
He reported on national television that the required oil reserves are in storage tanks and are ready for immediate commercialization. Although Maduro did not elaborate on how the sale and transfer of stocks will be organized to support Petro.
Formerly Reuters reported, that the government initially planned to reserve 5 billion barrels of oil as collateral. However, US economic sanctions against state oil company PDVSA have led to a cut in production and a revised support program..
Actively promoted the government does not trade Petro on any foreign exchange, so material support is a way to increase domestic oil use and contain hyperinflation.