From Yahoo Finance: 2025-03-27 17:19:00

Venezuela’s currency is crashing as citizens rush to buy dollars amid fears of US pressure on the country’s oil industry. Trump imposed a 25% tariff on Venezuelan oil buyers, causing companies like Reliance Industries and Repsol to halt purchases. The bolivar has weakened, hitting 106 per dollar from 66 at the start of the year.

The US measures threaten inflation and economic stability in Venezuela. With the economy expected to contract this year, the government’s reliance on oil revenue to supply dollars is crucial. Chevron Corp. faces a deadline to wind down operations, while the government may relax regulations to cope with the crisis.

Businesses struggle to replenish stock amid widening rate differentials, fueling inflation concerns. Government workers have had their hours reduced to save electricity, raising worries about domestic consumption. The government’s credibility to manage the exchange rate is weakening, leading to further currency devaluation, according to experts.



Read more at Yahoo Finance: Venezuela Currency Crashes as Trump Tariffs Choke Oil Sales