Thursday 23 May, 2019

Venezuela shuns USD in favour of Euro after US sanctions

In the face of tighter sanctions from the US, Venezuela said it will be moving away from the US dollar and will instead inject approximately 2 billion euros (US$2.3 billion) into its economy. 

According to a Bloomberg report, Economy Vice President Tareck El Aissami said Tuesday that effective immediately, government would now be using euro, yuan and other hard currencies instead of USD, due to a financial blockade set up by US President Donald Trump.

“Various actors continue to attack our financial system," El Aissami said in remarks broadcast on television. “We are not going to give in to foreign and imperialist interests.

Venezuela has experienced critical economic levels with millions of citizens fleeing the country in search for better financial chances. 

The Venezuelan government said the economic crisis is due to 'economic sabotage'. 

The government said it would open bank accounts in Europe and Asia in a bid to evade the sanctions. 

“The illegal measures will continue to damage the national economic system, and this is why we have made these decisions,” El Aissami said.

Meanwhile, on Monday evening, approximately 23 of Venezuela's states were left in the dark after a nationwide power outage.

Power Minister Luis Motta Dominguez says the blackout started Monday evening with an explosion at a power station in the northern state of Carabobo. It left at least 11 of Venezuela's 23 states in the dark.

Motta Dominguez said late Monday that power was back on in Carabobo and crews were working to restore it elsewhere.

However, residents in several other parts of Venezuela tweeted Tuesday morning that they remained without power.


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