Venezuela Banks to Get $300M Oil Money for Forex Market: Sources

Sources say Venezuela's government will allocate $300 million in oil revenue to selected banks to sell on the official exchange market, aiming to stabilize the currency.

The Venezuelan government plans to inject $300 million of state oil revenue into the financial system, directing selected banks to sell the hard currency on the official exchange market, according to sources familiar with the plan. This move aims to artificially bolster the bolivar by increasing the supply of U.S. dollars available through regulated channels. The strategy represents a tactical attempt at currency stabilization amid chronic hyperinflation and a vast gap between the official and black-market exchange rates.

The allocation of petrodollars to banks for this purpose highlights the state's continued control over the foreign exchange system. This monetary intervention matters because it provides temporary liquidity to the formal banking sector and may offer a brief respite for importers with access to the official rate. However, analysts caution that without broader economic reforms, such measures are unlikely to achieve lasting economic stability or close the multi-layered exchange rate system that cripples the economy.

For financial institutions operating in Venezuela and international observers, the implication is a managed, partial liberalization attempt within a controlled framework. The forecast is for continued volatility, with the black-market rate remaining the true benchmark for most transactions. Decision-makers must navigate the significant risks of capital controls and arbitrary policy shifts. The next imperative for the government is to use this intervention as a bridge toward more credible, unified exchange and monetary policies if it seeks to attract foreign investment and achieve meaningful financial system recovery.