FX.co ★ Venezuela Declares Economic Emergency as U.S. Sanctions Bite

On Thursday, Venezuela’s National Assembly endorsed a state of economic emergency decree put forward by President Nicolás Maduro, aimed at counteracting the increasing sanctions and tariffs imposed by the United States. This action comes in the wake of the Trump administration's decision in March to withdraw authorizations for oil firms collaborating with the state-owned PDVSA, alongside the imposition of additional tariffs on Venezuelan oil and gas exports. Signed by President Maduro earlier in the week, the decree provides significant authority aimed at bolstering economic growth, controlling inflation, attracting investment, and advancing import-substitution strategies. Vice President and Oil Minister Delcy Rodríguez stated that the decree is designed to support national production amidst ongoing U.S. pressures, emphasizing that oil and gas production continues to persist despite a 30% price decline. She also extended an invitation to international producers, provided they adhere to Venezuelan legislation. Meanwhile, the U.S. has set a deadline of May 27 for companies like Chevron, Eni, and Repsol to cease operations in Venezuela. Referring to the sanctions as an "economic war," Maduro has enacted similar decrees in the past, with the most recent extension running through 2021.