Venezuelan currency lost 9.4% of its value against the US dollar in August

The Venezuelan currency, the bolivar, lost 9.4% of its value against the US dollar in August, according to the Central Bank (BCV), which showed a rate of 32.59 bolivars per dollar at the end of the month.

On July 31, the bank reported that the dollar cost 29.50 bolivars, which means the US dollar price increased 10.47% in August.

This shows a continued decline for the bolivar, which lost 5% of its value in July and had already decreased by 37.34% in the first half of the year.

The bolivar’s decline continued throughout 2023, with some weeks worse than others.

Last month, the difference between the official dollar price and the black market average price grew even larger, with the black market price exceeding 34 bolivars per dollar.

The increasing dollar price in Venezuela affects the prices of goods and services, most of which are set in dollars.

Experts warn this could speed up inflation, which was already 121.3% between January and July, according to the BCV.

Additionally, the rising dollar price especially impacts public sector workers and pensioners.

Their minimum wage, set by the government and paid in bolivars, is about four dollars a month (3.69 euros), and this amount decreases as the bolivar’s value falls.