economy
May 8, 2026
AFP
Formal dollarization is a recurring fantasy in Venezuela that gains strength without Nicolás Maduro. Adopting the US currency is tempting in this country of very high inflation, but economists consider the measure to be drastic, even under the tutelage of its issuer. In Venezuela, there is a de facto partial dollarization that Maduro, captured in [...]
TL;DR
- Venezuela faces recurring discussions about formal dollarization due to high inflation.
- A de facto partial dollarization already exists, with the US dollar widely used in transactions.
- Economists view formal dollarization as a drastic measure with potential long-term consequences for economic diversification.
- The bolívar has significantly depreciated, with the highest denomination bill equivalent to only one official dollar.
- While dollarization can quickly reduce inflation, it eliminates a country's monetary policy.
- Some citizens, like bus supervisor Javier Roa and taxi driver Carlos, express a desire for dollarization.
- Others, like vendor Esperanza Suárez, oppose dollarization, preferring a strong bolívar.
- Other Latin American countries like Ecuador, Panama, and El Salvador have undergone dollarization with mixed results.
- A bimonetary system, maintaining both currencies, is considered a more feasible short-term option by some experts.