CARACAS — Venezuela will use $300 million from a United States-managed sale of its oil to support its struggling currency, interim leader Delcy Rodriguez has said, as the country battles chronic dollar shortages and economic instability.
Rodriguez said the funds, part of a $500 million sale of Venezuelan crude overseen by Washington, would be deployed to stabilise the foreign exchange market and protect workers’ incomes and purchasing power. The move is aimed at easing pressure on the bolivar, which has suffered years of steep depreciation.
The announcement follows a deal described by Washington as a “historic energy agreement”. US President Donald Trump said the oil would be sold at market prices, adding that the proceeds would remain under US control.
Foreign currency has been critical to Venezuela’s economy since 2018, when hyperinflation rendered the bolivar nearly worthless and the US dollar became the de facto currency for everyday transactions. While both currencies now circulate, a shortage of dollars has driven up the value of the greenback on the black market.
That scarcity has been largely blamed on a US oil embargo imposed six years ago, which sharply reduced Venezuela’s access to hard currency. Analysts say the government’s latest intervention could help narrow the widening gap between the official exchange rate and the parallel market rate.
By injecting dollars into the market, authorities hope to gradually restore confidence in the bolivar, said the Caracas-based consultancy Ecoanalitica, which tracks Venezuela’s foreign exchange flows.
Before the US-led operation that resulted in the capture of long-time leader Nicolas Maduro earlier this month, Venezuela had been forced to sell its crude at deep discounts to bypass sanctions. China had emerged as the biggest buyer of Venezuelan oil under those arrangements.
In recent months, Washington intensified its enforcement of sanctions by seizing tankers carrying Venezuelan crude, tightening pressure on illicit oil exports.
Despite holding some of the world’s largest proven oil reserves, Venezuela’s economy has been crippled by years of mismanagement, sanctions and declining production. Economists caution that while the latest inflow may offer short-term relief for the currency, lasting stability will depend on sustained access to foreign exchange and broader economic reforms.
