Venezuela: Pdvsa to convert investment accounts to euros and Asian currencies

President Hugo Chavez instructed state-run oil holding Pdvsa to convert investment accounts in US dollars to euros and Asian currencies to curb risk.

The move is likely to undermine the US currency further, as the Federal Reserve is taking steps to lower interest rates this week, Philip Ree, an economist with DBS Bank in Singapore told Bloomberg.
The US dollar has plunged compared to 14 of the 16 most active currencies in the world over the last year, partly because some governments have announced their decision to diversify their participation and are looking to other countries rather than the US, which the major destination for international reserves in the world.

Venezuela converted a part of its reserves into euros last year, together with other oil producing countries such as the United Arab Emirates, Kuwait, and Qatar.

El Universal