Venezuela’s government has intensified efforts to suppress black market dollar transactions, enforcing strict penalties on businesses using unofficial exchange rates in a bid to defend the weakening bolívar amid escalating U.S. sanctions. According to the Financial Times, the crackdown signals mounting pressure on President Nicolás Maduro’s regime as economic hardship worsens.
The parallel exchange rate, which is widely used in everyday transactions but operates outside the official system, surged nearly 25% following Washington’s recent tightening of sanctions. While the official rate moved marginally—from 63 to 70.59 bolívars per U.S. dollar—the parallel rate spiked from 80 to 104 before settling at 101. This widening gap has placed Venezuelan businesses in an impossible bind.
Retailers, restaurants, and small businesses now face audits, hefty fines, and even forced closures for pricing goods using the parallel rate—despite the reality that many imported products are priced in dollars. “We risk fines which would mean shutting down the business, as they’re unaffordable,” a Caracas shopkeeper told the Financial Times, requesting anonymity for fear of government reprisal.
To cope, some vendors are resorting to calculating an “intermediary” exchange rate—neither official nor fully black market—to protect margins without openly defying government policy. One such rate, calculated using an unofficial app, hovered between 80 and 90 bolívars per dollar this week.
Venezuela’s deepening economic woes come as U.S. President Donald Trump’s administration resumes a hardline stance against Maduro. In recent weeks, the U.S. canceled special licenses that had allowed international energy giants like Chevron, Repsol, and Eni to operate with state-owned oil company PDVSA. These companies now have until May 27 to wind down operations, a move expected to slash vital foreign currency inflows.
Adding to the turmoil, Washington announced “secondary tariffs” on nations buying Venezuelan crude. Though the government denies any adverse effect, oil exports dropped 11.5% in March, per Reuters shipping data. Maduro’s vice-president Delcy Rodríguez disputed the figures, claiming exports actually increased 8.7%.
Venezuela had shown signs of tentative economic recovery after implementing orthodox reforms in 2022, including relaxed price controls and reduced public spending. A form of unofficial dollarisation helped tame hyperinflation—albeit temporarily. That fragile progress is now under severe threat, with Caracas-based consultancy Ecoanalítica forecasting inflation could hit 189% this year.
Analysts estimate that U.S. sanctions cost the Maduro administration up to $4.5 billion last year. Chevron alone was injecting around $200 million monthly into the exchange market, stabilizing demand for the bolívar.
Economist Asdrúbal Oliveros of Ecoanalítica argues that the government should embrace informal dollarisation rather than fight it. “Repealing a tax on dollar transactions and allowing dollar transfers to banks again would help ease the pressure on the exchange rate,” he said.
Despite international pressure, the Venezuelan government appears adept at adapting. “They know how to sell oil on the black market—and more importantly, how to get paid,” said Luis Vicente León, head of local consultancy Datanálisis. He added that the government might respond to sanctions by nationalizing oilfields.
At Caracas’s bustling markets, the impact is visible. Official dollar rates are displayed on signs as required by law, but real transactions are negotiated verbally at black market rates. Vendors like egg seller Viviano González struggle with wild price swings. “It’s getting worse every day,” he told the Financial Times. “If I raise prices, people rightly get upset. But if I don’t, I lose money.”
As Venezuela’s economy teeters and repression intensifies, the government’s crackdown on unofficial currency exchange underscores just how fragile the country’s financial system has become—and how intertwined its survival is with both oil and the U.S. sanctions regime.
