Venezuelan authorities are actively working to maintain a stable exchange rate between the bolívar and the US dollar, as the gap between the official and black market rates continues to widen. Recently, the black market exchange rate has been reported to be 15-20% above the official rate, peaking at a 20% difference last week before receding to 17%. The current 'Monitor Dolar' rate stands at 42.86 bolívares per USD, compared to the official rate of 36.65 set by the Central Bank of Venezuela (BCV) [320087dc].
In response to rising complaints from consumers about retailers charging black market rates, the National Superintendency for the Defense of Socioeconomic Rights (SUNDDE) has deployed inspection teams to ensure compliance with pricing regulations. Additionally, the BCV has injected $180 million into exchange tables last week, bringing the total for 2024 to over $3.6 billion, which marks a 15% increase from the previous year [320087dc].
Despite these challenges, Venezuela has achieved a notable reduction in inflation, with the 12-month inflation rate currently at 43.7%, the lowest level since mid-2013. However, the minimum wage has remained stagnant since March 2022, which poses ongoing challenges for the population [320087dc].
The country is also facing significant economic hurdles, with the smallest circulating credit in Latin America, currently under $2 billion. Nevertheless, Venezuela's GDP has shown signs of recovery, growing by 8.4% and 8.8% in the first two trimesters of 2024. Experts estimate that Venezuela would need an additional 12 years of sustained 10% growth to return to its GDP levels from 2013 [320087dc].