Venezuela Dollarization Bill Drafted by US Economist Steve Hanke
US economist Steve Hanke has drafted a bill to dollarize Venezuela's economy, replacing the bolívar and closing the central bank. The proposal, however, has no official adoption or government endorsement yet. The post Venezuela Dollarization Bill Drafted by US Economist Steve Hanke appeared first on The Rio Times .
A drafted bill by US economist Steve Hanke proposes replacing Venezuela's bolívar with the US dollar, though the Venezuelan government has not endorsed the measure. Hanke, known for his expertise in currency reform, collaborated with Venezuelan Deputy Antonio Ecarri on the proposal. The draft would shut down the Banco Central de Venezuela (BCV) and eliminate the government's ability to print money and set interest rates, aiming to stabilize prices and restore confidence.
This transition would affect all transactions, wages, and savings, potentially impacting millions of Venezuelans. Despite some economic growth, the country has struggled with hyperinflation for years. Oil revenue from PDVSA, Venezuela's state oil company, is held in a US custody account, a factor that could complicate the dollarization process.
While Hanke's plan mirrors successful implementations in Ecuador and El Salvador, Venezuela's unique circumstances, including its oil wealth and sanctions, present additional challenges. The bill, reported by Fortune and Guacamaya, remains a draft without official backing or a timeline for consideration in Venezuela's National Assembly.
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