Venezuelan President Maduro announced on the 7th local time that Venezuela will implement a new international payment mechanism, create a basket of currencies and give up the US dollar. Reuters said that Maduro made a speech at the special session of the Constituent Assembly that afternoon, saying that in response to the financial sanctions imposed by the United States, Venezuela would use a basket of currencies consisting of RMB, Russian ruble, Japanese yen, euro and Indian Rupee in the international payment mechanism, which could be exchanged with its own currency, Bolivarian.

However, Maduro did not disclose more details of the new mechanism.

Bolivarian, Venezuela's local currency, has been depreciating since 20 12, and has fallen by 99.4% so far. As of Thursday, local time, people need 20,000 bolivar to exchange 1 USD on the black market. Economists say that the price difference with the official exchange rate breeds corruption.

At the same time, Maduro also announced a substantial increase in the minimum wage by 40%.

On the 25th of last month, US President Trump signed an executive order, announcing a new round of financial sanctions against Venezuela, prohibiting US financial institutions from participating in new debt and equity transactions between the Venezuelan government and state-owned Venezuelan oil companies, and prohibiting US institutions from participating in some bond transactions that have been issued by the Venezuelan public sector. The White House called Maduro the "dictatorship" of the country.

This is the fourth round of sanctions imposed by the United States on the election of Venezuela's Constituent Assembly. The previous three rounds of sanctions were aimed at individuals including Venezuelan President Maduro.

Maduro severely condemned the US move on the same day, saying that the sanctions were "illegal" and that the United States was forcing Venezuela to default, but the move would not succeed. He also said that 62% of Venezuelan bondholders are from the United States, and Trump's sanctions have hurt the interests of a large number of American investors.

Venezuela's economic crisis has turned into a humanitarian crisis. Driven by Maduro, Venezuela held the election of the Constituent Assembly on July 30th, and the Constituent Assembly was formally established on August 4th. The Maduro government hopes to remove the power of the opposition-majority parliament by re-enacting the constitution. The Constituent Assembly packed with Maduro allies replaced the opposition-led National Assembly.

In this regard, the opposition boycotted it and thought it was seriously unconstitutional. During April and July this year, 125 people were killed in protests against the ruling party.

Maduro warned on Thursday that all governors elected in the regional elections in June 5438+00 "must obey the Constitutional Assembly, or they will be dismissed immediately."

At present, Venezuela is facing a serious shortage of food and medicine, and is also suffering from hyperinflation. In August, the inflation rate was as high as 33.8%, and the increase in food prices exceeded the inflation rate by 50%. In the first eight months of this year, the accumulated inflation reached 366.4%.