US blockade to Venezuela: the negative impact on the international financial system

The unilateral coercive measures that the United States government has imposed on the Bolivarian Republic of Venezuela, contrary to international law and the Charter of the United Nations, have their maximum expression in the international financial system, denounced in recent days the People’s Power Minister for Foreign Affairs, Jorge Arreaza.

In a press conference from the Venezuelan Embassy in Moscow, the diplomat emphasized that the economic siege of Washington to Caracas hinders the capacity of the State for the importation of basic goods destined to meet the needs of the population.

“What it has generated is suffering in the Venezuelan people (…) It is criminal what the government of the United States is doing and we are going to insist on diplomacy, in dialogue, so that the Venezuelan economy is unblocked”, said the Foreign Minister Arreaza.

These illegal measures have a negative impact on Venezuela in the international financial system.

Increase in costs for bank fees

The banks that maintain relations with Venezuelan institutions have significantly increased the banking commissions for the execution of operations, making the available resources of the Bolivarian Republic more expensive for the promotion of the national development plans.

Account Closing

The economic blockade has resulted in the unilateral closure of banking correspondent contracts, as well as the systematic limitation and interruption of operations in international banks inside and outside the United States. The Bolivarian Republic of Venezuela has not been able to maintain accounts in US dollars and in euros on many occasions.

In the same way, it has generated the closing of accounts to national financial institutions, being mainly affected the Central Bank of Venezuela (BCV), the Bank of Economic and Social Development of Venezuela (Bandes), Bank of Venezuela, Bicentennial Bank and PDVSA, among other national public and private institutions.

In financial terms, this fence translates into higher transaction costs and losses of value that must be assumed by the Bolivarian Republic of Venezuela, increasing among others the amount paid.

Illegal appropriation of resources in dollars and other currencies

So far, the assets of the oil country retained in international banking, amounts to more than four billion dollars.

Bank of England: $ 1,359 million
Citibank: € 196 million
Clearstream: € 453 million
North Capital: € 238 million
Novo Bank: € 1,543 million
Sumitomo: € 415 million

Consequences

This financial siege, among other consequences for the population, has frustrated the transaction of 4,851,252 euros necessary for the care of 26 Venezuelan patients who are in Italy within the framework of a PDVSA agreement with a foundation for bone marrow transplantation and whose lives are at risk.

These resources are part of the € 1,543 million illegally retained by the Novo Banco financial institution based in Portugal.

Last April started an international campaign within the United Nations against the economic blockade of the United States to Venezuela.

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