You are here: Home » PTI Stories » National » News
Business Standard

Venezuela to create digital currency amid financing crisis

AFP  |  Caracas 

Venezuela is creating a currency to combat a financial blockade by the United States, President Nicolas Maduro has announced.

It will be called the Petro and be backed up by Venezuela's reserves of and gas and its gold and diamond holdings, the president said in his weekly television program.

"This is going to allow us to move toward new forms of international financing for the country's economic and social development," the president said yesterday.

The comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the and the state run firm PDVSA to be in partial default for missing interest and principle payments on bonds.

Maduro blames those problems on sanctions imposed by the United States in August, barring American citizens and companies from buying any new Venezuelan or PDVSA bonds.

Venezuela is mired in a deep economic crisis triggered mainly by a fall in prices and a drop in oil production. Petroleum is its main source of hard currency.

Over the past year, the Venezuelan bolivar has plummeted 95.5 per cent against the dollar on the black market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 04 2017. 02:15 IST