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🇻🇪 Venezuela /Economy & Trade

Venezuelans Bet on Dollarization Amid Accelerated Bolívar Depreciation

From El Nacional · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A study indicates 57% of Venezuelans support replacing the national currency, the bolívar, with the U.S. dollar due to rapid depreciation and high inflation.
  • The bolívar has lost approximately 45% of its value against the dollar since January, with prices heavily influenced by the dollar's daily exchange rate.
  • Despite a de facto dollarization since 2019, the bolívar remains in use for salaries, though experts caution that formal dollarization alone won't solve underlying economic issues like inflation.

Venezuelans are increasingly favoring the U.S. dollar as their national currency, with a recent study revealing that 57% of the population supports dollarization amid the bolívar's accelerating depreciation and persistent inflation. Only 30% oppose the measure, reflecting a growing preference for the U.S. currency in a country where dollar transactions are already widespread.

The negotiations are at a stalemate, and President Trump must break the deadlock. The ball is now in President Trump's court.

— Mohsen RezaeiRezaei described the current state of U.S.-Iran negotiations.

The survey highlights a stark deterioration in public perception of the economic situation. Eight out of ten respondents described the country's reality in May as "bad," coinciding with ongoing inflationary pressures and a decline in purchasing power. The poll also indicated a drop in approval for interim president Delcy Rodríguez, with 59% of participants disapproving of her management as the executive attempts to stabilize the economy and curb currency distortions.

These figures emerge as the bolívar experiences one of its weakest periods against the dollar this year. Since January, the Venezuelan currency has shed nearly 45% of its value. At the start of 2026, the exchange rate was around 300 bolívares per dollar; five months later, it surpassed 550, representing a depreciation of over 80%.

If the U.S. resumes combat, it will enter a dark path.

— Mohsen RezaeiRezaei warned of the consequences if conflict between the U.S. and Iran escalates.

The volatile exchange rate directly impacts prices, as most goods and services are priced based on the daily dollar value. In May alone, the dollar appreciated by 12.2%, while the bolívar devalued by nearly 11% within a single month. This dynamic keeps inflation high and hinders any recovery in real wages. Despite the de facto dollarization that began in 2019, the bolívar is still used for salary payments in both public and some private sectors, typically calculated at the official daily rate. Economists like José Guerra warn that formal dollarization, while popular, may not address the fundamental issue of inflation.

The release of $24 billion is a test of trust for President Trump if he wants to reach an agreement with Iran. The U.S. must pass this test, and then the path will open. This money is ours, not America's.

— Mohsen RezaeiRezaei stated the condition for resuming trust and negotiations.
DistantNews Editorial

Originally published by El Nacional in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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