Was Nicolas Maduro: A Threat to the Petrodollar and the Swift System?
On January 3, 2026, Venezuelan President Nicolas Maduro and his wife, Cilia Flores, were captured by US forces in a large-scale military operation. The operation’s motivations are multifaceted, with some speculating it is linked to Venezuela’s oil reserves and its decision to sell oil in currencies other than the US dollar.
Understanding The Petrodollar System
In 1974, Henry Kissinger made a deal with Saudi Arabia, requiring oil sales to be priced in US dollars, creating artificial demand for the currency and solidifying the US dollar’s position as a global reserve currency. This system has been a cornerstone of US economic power for over 50 years.
Venezuela’s Challenge to the Petrodollar
Venezuela has the world’s largest proven oil reserves, estimated at 303 billion barrels, and has been selling oil in currencies other than the US dollar, including the Chinese yuan, since 2018. This move, along with its petition to join BRICS and efforts to bypass the SWIFT payment system, has been seen as a challenge or a direct affront to the petrodollar system as negotiated by Henry Kissinger with the Saudis in 1974.
Historical Precedents
Similar actions have been taken against leaders who challenged the petrodollar system:
– IRAQ 2000: Saddam Hussein announced Iraq would sell oil in Euros; Iraq was invaded in 2003: Saddam Hussein’s decision to trade oil in Euros instead of US dollars led to the US-led invasion of Iraq in 2003. After the invasion, Iraq’s oil sales reverted to US dollars.
– LIBYA 2009: Muammar Gaddafi proposed a gold-backed African currency; Libya was bombed in 2011: Muammar Gaddafi’s plan to introduce a gold-backed African currency, the Libyan dinar, was seen as a threat to the US dollar’s dominance. NATO intervened in 2011, and Gaddafi was killed.
–VENEZUELA 2026: Nicolas Maduro captured; Venezuela’s oil reserves and petrodollar challenge cited as possible motivations: President Nicolas Maduro’s efforts to de-dollarize Venezuela’s economy and sell oil in currencies other than the US dollar, including the Chinese yuan, led to a US military intervention and his capture on January 3, 2026
Global Implications
The capture of Maduro has sparked concerns about the future of the petrodollar system and potential consequences for global trade and economies. Countries such as Russia, China, and Iran have denounced the US action, and the BRICS nations are considering alternative payment systems.
The situation remains fluid, and the true motivations behind the capture of Maduro may take time to fully understand.
The capture of Venezuelan President Nicolas Maduro on January 3, 2026, sparked intense debate and speculation about the motivations behind the US operation.
The UN Security Council is set to debate the situation
US Intervention “Operation Absolute Resolve,”
The US operation, dubbed “Operation Absolute Resolve,” resulted in Maduro’s capture and transfer to the US to face drug trafficking charges. The Trump administration justified the intervention as a response to Maduro’s alleged involvement in drug trafficking and election rigging.
Motivations
Critics argue that the real motivation behind the US intervention is to:
– Control Venezuela’s oil reserves: Secure access to Venezuela’s vast oil resources and force the country back into the dollar-denominated oil market.
– Protect the petrodollar system: Maintain the US dollar’s dominance in global energy trade and prevent further de-dollarization efforts.
– Counter Chinese influence: Disrupt China’s growing economic presence in Venezuela and the region.
Understanding the US Petrodollar System As a Powerful Tool for Global Finance
Established in 1974, as a cornerstone of American economic power. This system, created by Henry Kissinger’s agreement with Saudi Arabia, requires oil-exporting countries to price their oil in US dollars, creating artificial demand for the currency and solidifying the US dollar’s position as a global reserve currency.
How SWIFT Protects the Petrodollar
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a messaging system that facilitates international transactions. The US has leveraged SWIFT to enforce sanctions and maintain control over global financial flows, effectively protecting the petrodollar system. By controlling access to SWIFT, the US can exert significant influence over international trade and finance.
Challenges from BRICS
The BRICS nations (Brazil, Russia, India, China, and South Africa) have been working to reduce their dependence on the US dollar and challenge the petrodollar system. In 2014, BRICS established the New Development Bank and Contingent Reserve Arrangement to promote financial independence. The bloc has also developed alternative payment systems, such as BRICS Pay, and explored using local currencies for trade.
– Local Currency Trade: China and Russia conduct most of their bilateral trade in yuan and rubles, bypassing the US dollar.
– Alternative Payment Systems: BRICS Pay and CIPS (China’s Cross-Border Interbank Payment System) facilitate transactions in local currencies, reducing reliance on SWIFT and the US dollar.
Conflict and Fallout
The US has responded to these challenges with economic pressure and military intervention since 2003.
The potential fallout from these conflicts is significant. A decline in US dollar dominance could lead to:
– Reduced US Economic Influence: Decreased demand for the US dollar could erode American economic power.
– Increased Global Instability: A shift away from the petrodollar system could lead to currency fluctuations and global economic uncertainty.
The future of the petrodollar system remains uncertain. Will the US maintain its economic dominance, or will the BRICS nations succeed in creating a more multipolar global financial order?