The White House on Friday announced potentially hard-hitting financial sanctions against the Venezuelan regime, banning the trade in new bonds issued by the government and its cash-cow state-run oil company PDVSA.

The White House said President Donald Trump had signed an executive order "imposing strong, new financial sanctions on the dictatorship in Venezuela."

"The president's new action prohibits dealings in new debt and equity issued by the government of Venezuela and its state oil company," it said in a statement.

"It also prohibits dealings in certain existing bonds owned by the Venezuelan public sector, as well as dividend payments to the government of Venezuela."