State of the World from NPR Oil, dollars and daily survival: the strange state of Venezuela’s economy
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Jan 23, 2026 Dollars from seized oil are flowing back into Venezuela and changing how prices are set. Economists worry about foreign control of the country’s finances and whether the fix is sustainable. Shoppers in Caracas are calculating costs in dollars while pensions collapse and extreme poverty deepens. Families use small-scale tactics to stretch meager resources amid dizzying price swings.
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Dollars From Oil Are Stabilizing Prices
- U.S. sales of Venezuelan oil have sent dollars back into Venezuela, which appears to be easing price pressures for now.
- Economists warn this relieves symptoms but raises questions about sovereignty and long-term viability.
Shoppers Still Price Things In Dollars
- Shoppers in Caracas still think in dollars despite prices displayed in bolivars and long-standing unofficial dollarization.
- Retiree Ramon Perdomo says he cannot afford staples; his monthly pension equals less than 40 cents.
Inflation Has Crushed Living Standards
- Inflation has devastated incomes: annual inflation hit about 600% last year and wages are extremely low.
- More than 70 percent of the population now lives in poverty, leaving many unable to buy basics.