The United States has slapped strong financial sanctions on Venezuela, barring banks from any new deals with the government. <br/><br/>White House Press Secretary Sarah Sanders said this in a statement after President Donald Trump signed an executive order in this regard. <br/><br/>Ms Sanders said, the President's new action prohibits dealings in new debt and equity issued by the Venezuelan government and its state oil company. <br/><br/>It also prohibits dealings in certain existing bonds owned by the Venezuelan public sector, as well as dividend payments to the government.<br/><br/>Venezuela has been engulfed in an economic crisis, featuring skyrocketing inflation and food shortages.<br/><br/>Last month, US had sanctioned Venezuelan President Nicolas Maduro alleging that his administration has attempted to undermine democracy and the rule of law in Venezuela.<br/><br/>The Trump administration had warned of strong economic actions if Maduro's government went ahead with plans to create a constitutional assembly comprised of government loyalists. <br/><br/>The Venezuelan government established the constitutional assembly which granted Maduro's party sweeping powers.