The South American country that promises to end the "hegemony of the dollar"

The wave of criticism against Maduro was not long in coming: putting a world trade in a 'basket' of currencies other than the dollar is not anything. However, experts consider the measure feasible, beneficial and 'contagious' for other countries.
The South American country that promises to end the "hegemony of the dollar"

"It is impossible". Thus have some economic analysts judged the proposal made by the Venezuelan president Nicolás Maduro to use currencies other than the dollar to carry out international transactions.

Unbelief and criticism have rained over the possibility that Caracas will use an alternative payment system to get out of the "blackmail of the dollar", as expressed last week by Maduro himself during the presentation to the National Constituent Assembly of eight bills to deal with the Venezuelan crisis.

For some economists opposed to the government, this basket of freely convertible currencies - with which foreign currency transactions could be made in yuan, rubles, euros and rupees - could be "more expensive" for Venezuela and put an end to "confidence" than gives the dollar.

The decision announced by Maduro - and attacked by sectors critical of Chavismo since its genesis - comes after the US Government will issue "new and strong" financial measures against the South American country in retaliation for the election of a National Constituent Assembly, boycotted from the beginning by Washington.

Chain of discontent

Interviewed by RT, Adel El Zabayar, a Venezuelan expert on Economic Sciences, believes that "when the United States asks for sanctions, it creates a chain of discontent against its economy and political apparatus", which "forces the countries of the world to look for alternatives ", as the recent case of Venezuela.

In October last year, the International Monetary Fund (IMF) added the yuan to its basket of currencies, including the dollar, euro, yen and pound sterling.

As early as 2014, some emerging countries used the yuan in their foreign exchange reserves, even though they had not made the public announcement, according to Central Bank President Zhou Xiaochuan.

Since 2009, Beijing has made foreign exchange swaps with more than 20 countries, including Switzerland, Brazil, Hong Kong, Indonesia and South Korea, collecting 'Gold and Finance'. In other words, Venezuela would not be the first to carry out transactions with this type of alternative modality.

According to El Zabayar's point of view, the announcement made by Maduro harms the US government and its economy. "It isolates it more and more," he says, adding that "Venezuela can sell its raw material (oil) in any type of currency," he says.

Political Economy

"The economy is fundamentally a political fact, and the political dynamics, both national and global, is unpredictable," says economist Juan Carlos Valdez.

For the Venezuelan expert, his country "is in the navel of the world" at present, because "represents a new world paradigm for its resources" fossils, minerals and water.

"If we slip the dollar, we will develop our economy and we will go ahead," adds the tax law specialist, who believes that Venezuela could be "an example for other countries."

In his argument, he explains that unlike the US, China "is not an imperialist country" and "does not invade anyone who does not align with its economic policies," which could make the proposal financially attractive to other nations of the world.

Contrary to the experts who question Maduro's decision, based on the argument of the rapidity of Venezuelan oil payments by the United States, Valdez recalls that US purchases of crude have been decreasing in the two last years.

Currently, 40% of Venezuelan crude is bought by the Asian giant, 20% by India and 20% by the United States.

"Those who say that, they do not to leave their master. They pretend to deceive the public," says the economist.

He assures that although the diversification of the monetary basket announced by Maduro "will not be easy", because 41% of the world transactions are made in dollars, it is "important and without a doubt positive".