Citizens increasingly turn to the American currency to carry out their transactions and protect themselves from hyperinflation.
One of the proposals that there is in the public opinion before the resurgence of the economic crisis, the hyperinflationary process and the constant devaluation of the bolivar is the substitution of the national currency for the dollar.
Why dollarize?
Dollarization is a positive measure for the poorest people who live on their salary and when it is dollarized, since devaluation is eliminated and inflation is completely reduced. It is a fair measure for the poorest people because they allow him to keep his salary. Dollarization is so popular in countries where it has been applied.
In recent years, the results of the economic, monetary and fiscal policies implemented by the Venezuelan government have not met expectations. The needs of the population continue to grow and the policies implemented become less and less effective.
And one of the most notorious events that directly affects citizens is shortages and hyperinflation. And it is this bitter scenario that has put the issue of the dollarization of the Venezuelan economy as an option to be taken in the short term.
"The bottom of the abyss"
The Venezuelan economy is subject to a tight control of prices and currencies, monopolized by the socialist government.
In a country where oil contributes 96% of income and dependent on imports, the fall in oil prices and production led the government to drastically reduce foreign purchases, generating a severe shortage of food, medicines and raw materials.
Venezuela and state oil company PDVSA have been declared in default due to delays with capital payments and interest on debt.
The hyperinflationary spiral is so intense that it is common for people to walk around with cash bags to pay for a coffee or lunch. Added to the hyperinflation is the shortage of cash, which has forced the population to stand at the doors of the banking agencies and ATMs to obtain increasingly limited amounts. Seniors have lost their lives in the queues of banks trying to collect their pensions and pensions.