Venezuelan President Maduro has officially stopped accepting US dollars as payment for its crude oil exports following the recent US sanctions levied on the country.
The White House leveled financial sanctions against Venezuela’s government last month for jailing political opponents and creating a pro-government legislative body with the power to supersede existing laws.
“Venezuela is going to implement a new system of international payments and will create a basket of currencies to free us from the dollar,” Maduro told the new legislative assembly, last week.
Venezuela is but the latest oil-producing country to attempt to disrupt the petro-dollar agreement hammered out in 1971 after the US went off the gold standard. Previous moves by other leaders have not proven to be successful.
Both Saddam Hussein and Moammar Khadafy in Iraq and Libya respectfully also attempted to sell crude oil for something other than the dollar and both men were killed and their governments toppled.
Although the move not officially announced by Maduro, has begun to be implemented with crude oil traders told to convert from dollar to the euro in the short-term.
My guess is that the Europeans will join the sanctions forcing Maduro into the hands of the Chinese and Russians and their newly formed oil trading system based on the yuan and gold.
Should this occur, I would not be booking trips to Aruba, since the likelihood of military operations will be filling the horizon off the southern beaches there.
History does have a way of repeating itself and anytime you hear the Monroe Doctrine raised the US Marines are not far behind.