In a move aimed at breaking the foreign currency liquidity freeze and providing hard currency to the private sector, informed financial sources revealed that the Venezuelan government notified four major local banks this week of its decision to share $300 million of oil revenues deposited in accounts in Qatar. This strategic step aims to enable these banks to sell dollars to Venezuelan companies suffering from a severe shortage of foreign currency needed to import raw materials and keep production running, according to Al Arabiya.net.
Financial distribution and injection mechanism
Sources indicated that financial authorities in Caracas have instructed four local financial institutions that each will receive approximately $75 million in the coming days. These funds come directly from recently collected oil revenues. The sources added that these dollars will be available for sale to companies operating within Venezuela, subject to strict guidelines and controls set by the Central Bank of Venezuela, to ensure that hard currency reaches the most critical productive sectors.
Sanctions challenges and dollar shortage
This influx of foreign capital comes at a critical time, as local markets have suffered for weeks from a severe dollar shortage. Analysts attribute this shortage to recent actions by the United States, including the seizure of Venezuelan oil tankers, which has directly and negatively impacted the country's largest source of foreign currency. Venezuela, which possesses the world's largest oil reserves, is almost entirely dependent on oil exports to finance its budget and generate hard currency.
Economic background and the importance of the step
Venezuelan companies have faced enormous challenges for years related to hyperinflation and the devaluation of the local currency (the bolivar). This situation has forced the private sector to increasingly rely on the US dollar for commercial transactions and raw material imports. Companies have long been compelled to exchange the bolivar for the dollars held by the central bank, which are typically obtained from the limited oil sales available or through transactions made with foreign credit cards within the country.
This step is considered a "breathing lung" for the local economy, as the availability of dollars means a continued flow of basic goods and raw materials for industry, which contributes to curbing prices and providing products in the markets.
Official statements
In a related development, Venezuelan Vice President Delcy Rodríguez recently emphasized the crucial role of the Central Bank at this juncture, stating, "The Central Bank is the channel through which oil revenues will be channeled." She further explained the mechanism, saying, "These revenues will reach private banks through the foreign exchange market," indicating the government's attempt to regulate the exchange market and control cash flows under the economic blockade.
