Monetary liquidity skyrockets in Venezuela

  • There are 606.6 billion bolivars in circulation currently.

  • The monetary issue generates inflation in Venezuela. USDT emerges as an option.

Venezuela’s monetary liquidity, measured weekly by the Central Bank (BCV), has expanded strongly during 2025.

According to the data Published on the official website of the organization, the total number of bolivars in circulation went from 167.9 billion in January to 606.6 billion bolivars currently. This represents a increase of 261% in less than a year.

As seen in the following graph, Venezuelan monetary liquidity has been expanding at an accelerated pace so far this year:

Orange line graph that represents the increase in monetary liquidity in Venezuela.Orange line graph that represents the increase in monetary liquidity in Venezuela.
Venezuela’s monetary liquidity has had a constant increase this year. Source: Image generated by ChatGPT with data from the BCV.

According to the monetarist current popularized by Milton Friedman, it is considered that “inflation is always and everywhere a monetary phenomenon.” This is because when the amount of money (liquidity) increases in a greater proportion than the production of goods and services, Purchasing power falls and prices tend to rise.

From this position, the Venezuelan economist Hermes Pérez assures that this phenomenon can be controlled by following the “recipe that everyone knows.” This is avoiding monetary financing and reduce the expansion of liquidity.

According to Steve Hanke, economist and university professor, Venezuela’s annual inflation is the highest in the world, currently at 551% annually, according to his own estimates. calculations. This, as a consequence of the fact that the Venezuelan government’s “money printer” “is working at full speed.”

The International Monetary Fund (IMF) estimated that Venezuela’s annual inflation is around 270% annually. In fact, by 2026, the agency foresees an even more adverse scenario, with a inflation that could exceed 680% next October.

Although high inflation deteriorates the economy, the Central Bank of Venezuela itself said that the country’s gross domestic product (GDP) rose to 8.71% in the third quarter. According to government officials, they have defeated the so-called “economic war.” This, according to them, causes inflation and the devaluation of the bolivar.

In the midst of this dynamic, the Venezuelan population has resorted to using USDT and other stablecoins. This, as a mechanism to safeguard value and means of payment.

As CriptoNoticias has documented, these digital currencies have made it possible to mitigate the effects of inflation and facilitate daily transactions in an environment marked by persistent economic instability.

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