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[1/2] A couple who bought a television on sale had their motorcycle towed while shopping in a store during Black Friday sales, in Caracas, Venezuela November 25, 2022. The government allows banks to lend only 27% of their total cashflow, rendering credit cards largely useless as prices balloon on annual inflation of more than 300%. "Consumer credit has died in Venezuela," said Luis Vicente Leon, director of consulting firm Datanalisis, calling credit limits "ridiculous." "The economy needs consumption to be more dynamic," said Gustavo Valecillos, president of the Consecomercio retailers guild, adding layaway helps move inventory. I paid half and the rest in two installments," said construction worker Juan Vegas as he left a shoe store in Caracas.

Persons: Leonardo Fernandez Viloria, Nicolas Maduro, Ernesto Urdaneta, Urdaneta, Betsy Perez, Luis Vicente Leon, Pedro Vallenilla, Ecoanalitica, Gustavo Valecillos, Juan Vegas, Mayela Armas, Mariela Nava, Tibisay Romero, Julia Symmes Cobb, Emelia Sithole Organizations: Black, REUTERS, Thomson Locations: Caracas, Venezuela, CARACAS, Latin America, Maracaibo, Valencia, Banks

The relaxed sanctions could lead to $1.4 billion in additional income for Venezuela over the next six months, analyst firm Sintesis Financiera said in a report. The additional oil income is expected to arrive gradually, partly though the redirection of exports. "The contribution will go to social spending and services." The government has traditionally increased social spending, public sector salaries, food distribution and housing construction projects ahead of elections, though national income has been limited over the last five years because of the sanctions and problems at PDVSA. Public spending has fallen to 15% of gross domestic product from 40% a decade ago, according to economic analysts.

Persons: Gaby Oraa, Nicolas Maduro, Sintesis Financiera, PDVSA, Jose Vielma, PSUV, Ecoanalitica, Oswaldo Ramirez, Jose Guerra, Maduro, Mayela Armas, Deisy, Julia Symmes Cobb, Rosalba O'Brien Organizations: REUTERS, Rights, Venezuelan Finance Observatory, Thomson Locations: Petare, Caracas, Venezuela, Rights CARACAS, Venezuelan, United States, Washington

But by January of this year, faced with rising rent, increased taxes and financing constraints, he closed it down. The government of Nicolas Maduro relaxed currency controls in 2019, allowing more transactions in dollars despite U.S. sanctions. The move led to a slight recovery in 2021 and 2022 after eight years of economic collapse and the migration of some 7.3 million Venezuelans. 'NO BUYING CAPACITY'Other businesses which have survived said they were slashing prices, salaries and profit margins to stay afloat. "Structural economic problems like scarce credit, an absence of recovery in public utilities, among others, were not resolved."

Persons: Enrique Perrella, Nicolas Maduro, Maduro, Yaner Fung, Fung, Ecoanalitica, Jesus Palacios, Migdalia Uviedo, Ivan Puerta, restaurateurs, Giulio Gallucci, Mayela Armas, Keren Torres, Tibisay Romero, Johnny Carvajal, Julia Symmes Cobb, Vivian Sequera, Rosalba O'Brien Organizations: Venezuelan Finance Observatory, Retailers, Restaurants, Thomson Locations: CARACAS, Caracas, Barquisimeto, Valencia, Ecoanalitica, Mexican

☆ Chevron export earnings boost supply of US dollars in Venezuela -sources
▼ + stars: | 2023-05-02 | by ( Mayela Armas | ) www.reuters.com time to read: +3 min

Companies Chevron Corp FollowCARACAS, May 2 (Reuters) - Some of U.S. oil major Chevron Corp's (CVX.N) export earnings from its Venezuela operations are bolstering supplies of U.S. dollars in the South American country, three sources with knowledge of the matter told Reuters. Chevron operates in Venezuela, which is under U.S. sanctions, with special authorization from Washington. The central bank also sells dollars, mostly the product of oil sales. According to local consulting firm Sintesis Financiera, the central bank offers between $40 million and $50 million per week. The central bank did not respond to requests for comment.

Resurgent inflation is devouring the income of Venezuelans - even the relatively privileged ones like Mendoza who have access to U.S. dollars. That is leaving them hungry and struggling to buy food and medicine, they told Reuters. "Neither dollars or bolivars are enough. Many Venezuelans were left to scour through garbage to find food, and millions fled the country to build new lives across South America and beyond. "Whether you pay in bolivars or dollars it is not enough," Lochunga said, sitting in front of his stall.

☆ Venezuelans say credit cards that were once lifeline now 'useless'
▼ + stars: | 2023-02-13 | by ( Mayela Armas | ) www.reuters.com time to read: +4 min

"They are useless," administrator Lina Pereira, from the central city of Valencia, said of her two credit cards, which both have low limits. "My parents bought appliances and computers with their credit cards, but that's a memory for Venezuelans." As incomes have fallen and living costs have grown, credit cards have become vital for many people to make everyday purchases in supermarkets and pharmacies, even as credit limits stagnate and some banks eliminate the cards altogether. In 2012 that figure was 12% in Venezuela, while in countries like the Dominican Republic and Bolivia credit cards currently account for 5% of banks' credit portfolios, according to those country's regulators. "With the limit on cards you can't even pay for lunch," said Gregorio Afonso, a 53-year-old university professor who has two local credit cards and an income of $20 monthly.

☆ Venezuela's anti-inflation efforts dealt blow as currency tumbles
▼ + stars: | 2022-11-24 | by ( Cynthia Kim | Jihoon Lee | ) www.reuters.com time to read: +2 min

For months, President Nicolas Maduro's administration has sought to fight inflation by anchoring the bolivar's exchange rate. It has increased the supply of foreign currency cash in local banks and limited the expansion of credit and public spending. The local currency has depreciated 17% since October, and 55% so far this year. Both economists said the government may be fine with letting the exchange rate slide a little more, if it allows them to spend again. The central bank did not immediately respond to a request for comment.

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