Exchange Rate in Venezuela

Venezuela Exchange Rate | Economic News & Forecasts

Venezuela - Exchange Rate

Venezuelan bolivar depreciates sharply in November

The Venezuelan bolivar (VED) has fallen by over 25% against the U.S. dollar over the last month—reaching record lows—and 60.7% year to date. On 2 December, the VED ended the day at 11.69 per USD, while the parallel market rate on the same day was VED 13.45 per USD—marking a more than 47% plunge over the previous month. The easing of public spending restrictions and lower injections of USD into local banks from the Central Bank have weighed on the currency recently.

The government has increased spending on a variety of bonuses and handouts recently, which has in turn translated into more local currency in circulation. This is fueling inflation, which rebounded from 114% in August—the lowest reading since July 2015—to 156% in October, further prompting households to get rid of a currency that is rapidly losing value.

On top of this, the Central Bank recently cut the amount of USD injected into the banking system: It is estimated that the weekly assignment of USD to local banks has fallen from around USD 80-100 million in October to less than USD 50 million in November, making the currency scarcer. This reduction in dollar inflows is due to a variety of reasons, including a recent decline in the price of oil—following a spike in prices due to the war in Ukraine—and reduced oil production amid a lack of investment.

Going forward, our panelists expect the VED to continue depreciating. In the short term, a further loosening of the government’s purse strings due to year-end payments to public employees looks set to put additional downward pressure on the currency. In the longer term, monetary financing of the fiscal deficit will continue to be the main driver of the protracted weakening of the currency.

Our panelists project the official rate to end 2023 at VED 28.01 per USD and 2024 at VED 59.30 per USD.

Venezuela - Exchange Rate Data

2015   2016   2017   2018   2019  
Exchange Rate (vs USD)6.30  10.00  10.00  638.2  46,621  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

Venezuela Exchange Rate Chart


Venezuela Exchange Rate
Note: Bolivar Fuerte (VEF) per U.S. dollar.
Source: Thomson Reuters.

Venezuela Facts

Value Change Date
Bond Yield5.500.0 %Aug 19
Exchange Rate248,8320.0 %Aug 17

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form