Authorities in Venezuela have told oil traders that they can no longer accept or make payments using U.S. dollars with their oil deals, Sputnik reports.
This development was reported by the Wall Street Journal citing sources familiar with the matter.
This comes amid rising tensions between Washington and Caracas as a result of new U.S. sanctions imposed on Venezuela last month.
This decision by the Venezuelan government means oil traders who import foreign petroleum products and export Venezuelan oil will have to convert invoices to euros, according to WSJ.
In August, President Donald Trump slapped Venezuela with fresh sanctions to force Venezuelan dictator Nicolas Maduro not to proceed with its plan to rewrite his country’s constitution.
In response, Maduro vowed to start selling Venezuelan oil in currencies other than the U.S. dollar, particularly, the Chinese yuan.