Hyperinflation
Your daily briefing for Friday, December 8, 2017. Translated by Javier Liendo.
El Feed
Inflation Bells Ring Louder and Louder
Fears of economic collapse mount and Venezuelan economists are raising the alarm. According to the Venezuelan Finance Observatory, inflation in May reached 26%, pushing the annual rate to 105.5%.
Echoes of 2017
Venezuela’s consumer-price spiral is accelerating again: monthly inflation jumped from 18.4% in April to 26% in May, while year-over-year inflation now stands at 229%.
With oil revenues shrinking and foreign currency inflows drying up, the Venezuelan Central Bank has increased its direct financing of PDVSA by about 300 %, the OVF reported. Economist and researcher Manuel Sutherland warns that the monetary base is expanding at roughly 3% per week—a pace he says should not exceed 3% per year. Unpublished projections cited by Sutherland put year-end inflation anywhere between 300% and 500%.
As this week opened, the official rate hovered around Bs 99 per US dollar, while the parallel market quoted Bs 115–120. In its razzia against “parallel dollars”, the Maduro regime says it has arrested 50 people for allegedly publishing or trading at black-market rates.
Oil expert Francisco Monaldi notes that if a 25% monthly inflation rate were to persist for a full year, it would compound to nearly 1,500%. Consultant Daniel Cadenas adds that current patterns echo those seen in the months leading up to December 2017, when Venezuela officially slipped into hyperinflation.
June 9, 2025: Trump’s travel ban takes effect
Right now, Venezuelans are no longer eligible for U.S. tourist (B1/B2), student (F), or exchange-visitor (J) visas—though student visa appointments are currently suspended worldwide.
A few exceptions exist, such as footballers competing in the 2026 World Cup (that would be the case of Vinotinto players if they make it through), athletes attending the LA Summer Olympics in 2028, and individuals with dual nationalities.
These restrictions also apply to citizens of Cuba, Turkmenistan, Laos, Sierra Leone, Togo, and Burundi.
The ban does not affect those who already hold valid U.S. visas as of June 9, 2025. However, current visa-holders will not be able to renew or obtain new visas for now.
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