The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Venezuela: PDVSA issuance counteracts dollar shortage

Clampdown on black market FX trade; Long-term fears about default

PDVSA, Venezuela’s state-owned oil company, is issuing larger amounts of debt in the international markets so that individuals and corporations in the country have access to US dollars, after the government stopped local brokerages from exchanging dollars on the black market last year.

The company issued a total of $10.8 billion of debt last year maturing in 2014, 2017 and 2022, according to Barclays Capital. It pays the highest yield – more than 16% on the 2017 paper and 17.5% on the 2022 paper – of any sovereign or corporate in the emerging markets.

Last May, Venezuelan police and prosecutors raided 30 of the country’s brokerage houses to stop them from trading on the parallel foreign exchange market. The official exchange rate is 4.2 bolivars to the US dollar but the black market rate can be as high as 8.7 bolivars.

However, the clampdown led to a shortage of dollars and the government has had to find other mechanisms to obtain them, especially for individuals who are friendly towards president Hugo Chávez’s government.

"Venezuela has been using PDVSA as a tool to support the country’s fiscal and monetary policy"

Juan Cruz, Barclays Capital

"Increasingly, Venezuela has been using PDVSA as a tool to support the country’s fiscal and monetary policy," says Juan Cruz, a Venezuela analyst at Barclays Capital.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree