Data presented by Conindustria reports that 58 % of SME owners in Venezuela face a lack of foreign currency as the main obstacle to production.

The currency auction in the national banking system is considered insufficient and discretionary, and is designed to exclusively benefit “large food and health corporations, leaving medium-sized manufacturers of chemicals, plastics, and technology empty-handed.”

The industrial sector points to a “drought of official dollars” that has led companies to take refuge in cryptocurrencies to cope with this lack of foreign currency and inflation in order to maintain production.

Digital currencies are an alternative given the difficulty in obtaining funds through traditional means. In this regard, analysts warn that as long as auctions remain limited — registering a 13% drop compared to the previous year — the economic recovery will be fragile.

The president of Conindustria, Tito López, recently pointed out that the paralysis of SMEs, due to the lack of foreign currency, “puts the entire supply chain at risk” as a consequence of insufficient financial support.

M.Pino

Source: alnavio

(Reference image source: engin akyurt on Unsplash)

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