Controversy As Venezuela Set To Deploy The Petro At The International Level
Economists are not sure if the plan will solve inflation in the troubled nation.
Maduro Orders Deployment of Petro in Global Trade
Venezuela is looking for measures to tackle the growing rate of inflation. As a remedy, President Nicolas Maduro still believes that the petro will cure the situation. The petro is a token created by the government in a bid to tackle the stubborn inflation.
Speaking on Thursday during a TV interview, Maduro tackled a number of biting economic issues. He announced that the country will adopt the petro for global trade from next month. However, leading economists, have raised a number of concerns with the rollout. Economists argue that the global market might not be receptive to the petro.
Maduro said that the petro will serve as a currency of trade and it will be used to buy items while at the same time being convertible to other global currencies. At the moment, Maduro has not clarified which trading sectors will adopt the petro first. The token was launched by the government back in February.
Maduro is confident that the petro will help the economy thrive due to positive performance. He said that the deployment at an international level is being backed by the usage of the token in the country’s economic system.
Petro’s Deployment in the Local Economy
Prior to the revelations, Maduro had earlier on revealed that Venezuela’s fiat money, the sovereign bolivar, will be tied to the petro. The petro is an oil-backed token. Locals banks were immediately ordered to deploy the petro as an account unit.
A section of government-owned businesses were also required to go the petro way. Maduro gave an order requiring such entities to convert a section of sales into the petro. The petro has attracted controversy from big economic players. Policy Makers in the South American republic have declared the petro as an illegal token. Elsewhere, US President Donald Trump has imposed sanctions on the country over the petro.