Venezuela’s currency liquidity, measured weekly by the Central Bank (BCV), expanded significantly in 2025.
According to data published on the organization’s official website, the total number of bolivars in circulation has increased from 167.9 billion bolivars in January to 606.6 billion bolivars now. this is, A 261% increase in less than a year.
As seen in the following graph, Venezuela’s currency liquidity has been expanding at an accelerated pace so far this year.
According to the monetarist current popularized by Milton Friedman, “inflation is always and everywhere a monetary phenomenon.” This is because when the amount of money (liquidity) increases more than the production of goods and services, Purchasing power decreases and prices tend to increase.
From this standpoint, Venezuelan economist Hermes Pérez asserts that the phenomenon can be controlled by following “a recipe that everyone knows.” This avoids financial financing and Curbing the expansion of liquidity.
Economist and university professor Steve Hanke says Venezuela has the highest annual inflation rate in the world, currently at 551% per year, according to his calculations. This is a result of the fact that the Venezuelan government’s “money printing presses” are “running at full speed.”
The International Monetary Fund (IMF) estimates that Venezuela’s annual inflation rate is approximately 270% per year. In fact, organizations are predicting even more adverse scenarios by 2026. Inflation could exceed 680% next October.
Although high inflation worsens the economy, Venezuela’s central bank itself announced that the country’s gross domestic product (GDP) rose to 8.71% in the third quarter. According to government officials, the so-called “economic war” has been won. They say this will cause inflation and a devaluation of the bolivar.
In this dynamic situation, Venezuelans have resorted to the use of USDT and other stablecoins. This is a mechanism to protect value and means of payment.
As documented by CriptoNoticias, these digital currencies have made it possible to reduce the impact of inflation and facilitate everyday transactions in an environment of continued economic uncertainty.
(Tag to translate) Economy
