Crypto Community, World At Large Is Puzzled At The True Value Of The Venezuela’s Petro Coin
What Is The True Value Of The Petro Cryptocurrency From Venezuela?
To-date, the value of the petro—the cryptocurrency from Venezuela that is supported by its oil revenues is yet to be established. This is despite the fact that the cryptocurrency is actually recognized and backed by the Venezuelan government. Government sources who have been questioned about its value keep giving varying figures.
The Petro Release Date
The Venezuelan government announced the official release of the Petro more than a year ago. It was released in December of 2017 with the aim of being used to cushion the country against the numerous sanctions levied upon the country by the international community.
As of now, reports from the country indicate that the government has gone ahead and hedged the controversial currency against its sovereign bolivar. This is a move that has seen it start making pension payments to its citizens using the cryptocurrency. According to some sources within the government, a single petro ought to be backed by one oil barrel.
The Venezuelan central bank published an article on its official website on November 30 pointing out that a single petro was equivalent to 9000 bolivars. The central bank also went ahead to introduce exchange rates that could help its citizens track the value of the petro against major international currencies such as the US dollar.
Based on the exchange rates provided online, it means that a single US dollar can today be equated to a total of 638.18 Venezuelan bolivars. According to this figure, it means that a single petro, which is supposedly supposed to be backed by one oil barrel ought to be equivalent to 14.10 dollars.
But these figures are not totally representative of the actual facts on the ground. A closer look at the exchange rates being used by the Banco de Venezuela paints a totally different picture. This is a commercial bank that was reportedly acquired by the Venezuelan government in the year 2009.
At the time, the government stated that it had acquired the bank for a total of one billion dollars. The commercial bank, via its web portal, has been indicating that a single petro coin is currently valued at around 38,200 sovereign bolivars. This means that compared to the dollar, it is trading at 59.85 dollars, and not the figures provided by the central bank.
What is not yet clear, however, is where the Banco de Venezuela commercial bank gets its exchange rates from. This is because sources on the ground are reportedly claiming that the petro prices have surged in the last few months. Sources outside the country say they have been dealing with volatile fuel prices for the past six months.
This is a period that has seen the prices drop from a high of seventy-seven dollars to retail at a new low of forty-five dollars. This only changed when Saudi Arabia experienced some cuts in its overall oil output, which led to the oil prices climbing back to forty-seven dollars. It is, therefore, important to point out that the rates being used to exchange the dollar against the bolivar are in no way properly defined.