Oil and Petroleum Reserves | Digital Finance

José Guerra.- When we all believed that the petro was a species in the process of extinction, because it does not exist literally, no one l & # 39; It accepts and it is not traded on world markets, suddenly the government tries to revive it, with a very questionable modality, we do not know how to anchor the value of bolivar oil This will happen to the annals of Creole folklore like the vertical henhouses, the pie road, the southern gas pipeline, among so many other domestic eccentricities that cost us so much. A currency in economic terms means fixing its value against another currency that is considered stable. When this is done, what is sought is that the country that sets the currency, import the anti-inflationary reputation of the currency that serves as the anchor point. For this reason, the economies that anchor or fix their currencies usually do so against the dollar or the euro and before doing so with the pound sterling. A very different thing is to base the issuance of local currency in gold or currency. If the anchor against the dollar, let's say, is credible, what will happen is that domestic prices will behave like US prices and that's what happened in Venezuela in a good part of the years. As the petro is not a currency, ie a universal currency of acceptance, it should not be used as an anchor of another currency, in that it is not a currency. Occur the bolivar. The petro is an idea, but not a currency properly not to meet the attributes of a currency, namely, to be a means of exchange, a store of value or a unit of naming prices. But there are other complications in this idea coming from the brain, I do not know who. Petro is based on the barrel of oil. Which barrel, which is in the basement as reserves or which is extracted and placed in an international port and therefore has a price? It's not worth the same a barrel in the basement as another already extracted. If this is the barrel already mined and marketed, then the value of oil will fluctuate as the price of oil moves into the global market, which is out of Venezuela's control. In other words, all the volatility of the international oil market would be transmitted to the petro and therefore to the bolivar. This would not anchor the value of the currency. On the other hand, if there are oil reserves, there are two problems. The first, how to evaluate these reserves to impute a value to the petroleum? This is extremely complicated because in part the valuation of these reserves depends on the price of oil today and the future price and no one knows for sure. The second, who had the idea of ​​using the oil reserves to anchor the bolivar to the petroleum, did not read the Constitution that its article 12 reads as follows: "Mineral deposits and of hydrocarbons, whatever their nature, exist on the national territory, under the bed of the territorial sea, in the exclusive economic zone and on the continental shelf, they belong to the Republic, they are goods of the domain public and therefore inalienable and imprescriptible. "

Oil reserves can not be transferred or transferred, let alone to carry out financial transactions. Thus, the country's oil reserves can not be used to support a currency.

@JoseAGuerra