Bitcoin Magazine
2018-05-03 16:26:05

Venezuela Offers India Discounted Oil to Boost Petro Confidence

Venezuela has reportedly offered the Indian government a fantastic deal: a 30 percent discount on crude oil imports. The only condition being that the oil must be purchased through the nation’s newly minted cryptocurrency, the Petro.Venezuelan Crisis  The release of the currency comes as Maduro’s government attempts to address a number of pressing financial issues that have pushed Venezuela into a crippling recession. As a nation heavily dependent on oil exports, the dramatic fall in crude oil price hit the South American country especially hard. The recent fall has been dramatic with increased production and reduced consumption plummeting the world price from above $125 per barrel in 2012 to less than $30 by January of 2016. The IMF predicts that, by the end of year, Venezuela will have experienced a GDP decline of nearly 50 percent since 2013. In response to the political controversy surrounding the election of President Maduro and substantial evidence of human rights abuse, the Trump administration in August 2017 announced additional sanctions against Venezuela and encouraged its allies to follow a similar course. This further hampering of the economy, which is expected to contract 15 percent by the end of the year, turned the situation dire. In November, the government announced that it could no longer service its foreign debt of $105 billion, “roughly ten times Venezuelan foreign exchange reserves,...