The Venezuelan bolivar is losing value on the US dollar as tensions mount between the two countries (Federico PARRA) <\/p>\n
Venezuela, currently in the throes of an escalating crisis with the United States, closed the books Wednesday on a complicated year for its economy, with the official cost of buying a US dollar up 479 percent in the last 12 months.<\/p>\n
The gap between the official and black market rate is mounting as well, nearing 100 percent in an economy that has become increasingly dollarized as a way to tackle hyperinflation.<\/p>\n
Even though President Nicolas Maduro projected economic growth of nearly nine percent in 2025, the oil-rich South American country has seen a sharp decline, with inflation soaring and hard currency in short supply.<\/p>\n
US President Donald Trump has piled the pressure on Maduro, stiffening sanctions and ordering the seizure of “sanctioned oil vessels” sailing to and from Venezuela.<\/p>\n
Venezuela’s central bank on Wednesday set the official rate at 301.37 bolivars to the US dollar, a rate in effect until January 2. That marks a 479.25 percent increase from the rate of 52.02 bolivars to the dollar posted in early 2025.<\/p>\n
On the black market, where prices are determined by crypto exchange platforms, one US dollar is going for nearly 560 bolivars — at least an 85 percent difference with the official rate.<\/p>\n
Economists say that 80 percent of Venezuela’s currency exchanges are carried out on such platforms.<\/p>\n
Inflation could ultimately pass the astronomical rate of 500 percent in 2025, according to estimates from private firms. Official data has not been published since October 2024.<\/p>\n
Venezuela has been under a US oil embargo since 2019 and exports the vast majority of its output on the black market at a sharp discount.<\/p>\n
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