Foreign currency inflows to Venezuela are set to contract sharply after President Donald Trump ordered a full blockade of sanctioned oil tankers entering or leaving the country, analysts and business leaders warned this week.
The move—Washington’s most aggressive pressure tactic yet—threatens to further depress oil revenues, already weakened by sanctions and last week’s vessel seizure, and could choke the supply of dollars and cryptocurrencies that Venezuelan firms rely on to import raw materials.
With global buyers now demanding steep discounts on Venezuelan crude and uncertainty clouding future shipments, economists say the private sector may see a sudden tightening of liquidity. The IMF expects inflation to hit 548% by year-end, and a shrinking supply of foreign currency is likely to accelerate the bolivar’s daily depreciation.