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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.

☆ 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 inflation accelerating, heightening risk of return to hyperinflation, economists say
▼ + stars: | 2023-01-05 | by ( ) www.reuters.com time to read: +2 min

CARACAS, Jan 5 (Reuters) - Venezuelan consumer prices rose at a sharp 37.2% clip in December from November, heightening the risk of a return to hyperinflation, according to estimates by the Venezuelan Finance Observatory, a non-governmental group of economists. The private inflation estimate is key since Venezuela's central bank, which in October said annual inflation hit 155%, one of the highest rates globally, has not released consumer price data since then. For nine consecutive months, consumer price inflation was in the single digits thanks to strict policies implemented by President Nicolas Maduro's government, anchoring the exchange rate, limiting public spending and increasing taxes. After the policies were rolled out, authorities said Venezuela had emerged from a four-year streak of hyperinflation. The central bank did not respond to a Reuters request for comment.

Some sponsors are U.S.-based relatives of Venezuelans eager to flee political and economic turmoil back home. Diaz, a Venezuelan-American advocate who has lived in the United States for the past 25 years, got in touch with Venezuelans seeking sponsors via social media. Around 7,000 Venezuelans have been approved for the new program since the Oct. 18 launch, a source familiar with the matter told Reuters. U.S. sponsors do not need to be related to Venezuelans to support their applications, but they must have permission to reside in the United States. A week after the new program was announced and the Mexico return policy was enacted, U.S. authorities saw an 80% decrease in Venezuelan border encounters.

WHAT HAPPENS NOW TO VENEZUELANS IN TRANSIT TO THE UNITED STATES? Those in transit may attempt to reach the United States despite the near certainty that they will be sent back to Mexico. It is unclear where Venezuelans waiting in Mexico will stay, as Mexico's migrant shelter system is often overwhelmed. Then in 2014, Venezuela's economy buckled as global oil prices tumbled, and living conditions further deteriorated as stringent price controls created widespread shortages. Remittances to Venezuelans from relatives in the United States or elsewhere help but are insufficient for most.

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