Venezuela Sells Dollars to Private Sector to Stabilize Bolivar

Venezuela is increasing its sale of dollars to the private sector in an effort to stabilize its currency, the bolivar, and prevent inflation from spiraling out of control, according to foreign media reports. Since March 31, authorities have sold approximately $330 million through direct foreign exchange interventions, marking a resumption of such actions that had been paused since mid-December last year. According to Jin10, this move highlights the interim government's efforts under President Rodríguez to stabilize exchange rates. Earlier this year, the introduction of a dollar auction mechanism faced challenges, with uneven supply exerting pressure on the parallel market. A report released this week by Ecoanalítica indicates that around 80% of dollar demand was rejected by the Venezuelan central bank without explanation. Ecoanalítica analysts noted that the official foreign exchange supply is highly concentrated among a few entities, leaving the needs of small and medium-sized enterprises and individuals unmet, which drives funds towards the parallel market. This situation has widened the gap between official and market exchange rates. Síntesis Financiera, a consulting firm, reported that in March, the government sold over $1 billion in the official foreign exchange market, setting a monthly record since the system was established in 2019.