Venezuela’s economy has closed out a challenging year, marked by a significant increase in the cost of buying US dollars. The official rate has risen by 479 percent over the last 12 months, with the central bank setting the current rate at 301.37 bolivars to the dollar. This surge has contributed to a growing gap between the official and black market rates, which now stands at nearly 100 percent.
The country’s economic struggles are attributed to various factors, including hyperinflation and a shortage of hard currency. Despite President Nicolas Maduro’s projection of nearly nine percent economic growth in 2025, Venezuela has experienced a sharp decline. The US has imposed sanctions on the country, further exacerbating the situation. President Donald Trump has ordered the seizure of “sanctioned oil vessels” traveling to and from Venezuela, adding to the pressure on Maduro’s government.
The black market rate, determined by crypto exchange platforms, currently stands at around 560 bolivars per US dollar, an 85 percent difference from the official rate. Economists estimate that approximately 80 percent of Venezuela’s currency exchanges occur on these platforms. The country’s inflation rate is expected to surpass 500 percent in 2025, according to private estimates, although official data has not been published since October 2024.
Venezuela has been under a US oil embargo since 2019, forcing the country to export the majority of its oil output on the black market at a discounted price. This has severely impacted the country’s economy, which is heavily reliant on oil exports. As the situation continues to unfold, Venezuela’s economy is likely to face ongoing challenges in the coming year. The significant disparity between the official and black market rates, combined with the country’s ongoing economic struggles, will likely remain a major concern for the government and citizens alike.