In a significant development, Venezuela's monthly inflation rate has slowed to 1% in June, marking the lowest figure in twelve years. This notable decrease from May's 1.5% comes as the government intensifies its local dollar sales efforts in the run-up to the upcoming presidential elections.
After grappling with a period of severe hyperinflation that reached an astounding estimated rate of nearly 2 million percent annually, President Nicolás Maduro has continued to pursue a strategy characterized by stringent monetary and fiscal measures, while simultaneously permitting the circulation of the US dollar within the economy. These measures are being rolled out strategically as Maduro aims to secure an extension of his 11-year tenure in the upcoming July 28 elections.
Bolstering these efforts, the central bank notably increased its dollar sales in June to a substantial $441 million, contributing to a total of $2 billion in dollar sales during the first half of the year, as reported by Caracas-based consulting firm Síntesis Financiera.
Furthermore, the joint ventures between Petróleos de Venezuela SA and international oil majors, spearheaded by US-based Chevron Corp., have seen a significant uptick in dollar sales to the market. This surge follows the granting of US licenses that have allowed these ventures to expand their operations without contravening existing oil sanctions. Síntesis Financiera highlighted that these developments have played a crucial role in boosting dollar liquidity within the Venezuelan market, contributing to the moderation of inflationary pressures.