The treasury department issued a licence authorising commercial links with the central bank and other institutions, including Banco Universal, Banco Digital de los Trabajadores and Banco del Tesoro.

The move will allow the Venezuelan banks to engage in previously restricted financial transactions such as wire transfers, credit and debit card services and other activities.

The move comes two weeks after the US lifted sanctions against Venezuela’s interim President Delcy Rodriguez, who took power after Washington ousted her predecessor Nicolas Maduro in a military operation in January.

Ties between Washington and Caracas have warmed since Maduro’s ouster, with Rodriguez complying with US President Donald Trump’s demands for Caracas to open up its energy industry to American companies.

The US has eased a seven-year-old oil embargo on Venezuela and issued licenses allowing a handful of multinationals to operate in the country under certain conditions.

The US embassy in Venezuela also resumed operations last month after being closed for seven years.