Venezuela's Oil Income Under Threat Due to Us License Cancellation
US President Donald Trump's cancellation of licenses for foreign oil companies to operate in sanctioned Venezuela will reduce the dollars on offer in the country's exchange market, stoking depreciation of the local bolivar currency and prices, analysts said on Thursday. The cancellation is a test economic challenge for the Venezuelan government, which relies heavily on crude exports for 85% of its income. The move could mean a loss of up to $4.5 billion in oil income, according to analysts.
- This decision by Trump highlights the significant impact that executive actions can have on global commodity markets and the economies of nations reliant on those commodities.
- Will this move trigger a broader wave of economic instability in Venezuela's fragile economy, which has been struggling with hyperinflation and shortages of basic goods?