The Economy of Venezuela
Informal Dollarisation and Partial Recovery
As the bolívar collapsed, dollars circulated widely, easing some shortages and bringing partial stabilisation from about 2021.
An unofficial fix.
Dollar use
Shops and workers began to price and pay in dollars.
Relaxed controls
The government loosened price and exchange controls.
Stability
Inflation fell from its extremes, though it remained high.
Inequality
Those with access to dollars did better than those paid in bolívars.
A dollar shop
Stores in wealthier areas stocked imported goods priced in dollars.
Assuming dollarisation cures every problem
It creates new inequalities.
Key takeaways
- Dollars circulated widely.
- Controls were loosened.
- Inflation fell but stayed high.
- Inequality widened.
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