The partial sanctions relief announced on tuesday USA marks a relevant shift in policy towards Venezuela although without implying a total lifting of restrictions. The measure is focused on the Central Bank of Venezuela (BCV)one of the institutions most affected by the scheme coercive measures in force since 2019, and in three other state banking entities.

Due to the sanctions, for years the BCV was practically isolated from the international financial system. The sanctions prevented foreign banks—especially those with ties to the United States—from carrying out operations with the Venezuelan entity.

In practice, this meant that Venezuela could not move money freely in dollarshad serious difficulties receive payments from abroad and had to resort to indirect or intermediary mechanisms to collect key revenues, such as those from oil.

The financial blockade also affected internal operations: Venezuela faced obstacles to pay importsmanage reserves or channel currencies within their own economy. Although the country generated income, a significant part was trapped or circulated through opaque channels, outside the traditional banking system.

What changes now for the Venezuelan economy?

Now, financial institutions are once again authorized to carry out transactions with the BCV and the other three bankswhich opens the door to a partial reconnection with the global financial system.

From now on, the BCV can send and receive international transfersoperate more fluidly in currencies and recover links with its global financial intermediaries.

In practical terms, The change allows Venezuela to directly receive income in dollarsincluding those derived from its oil exports, without depending on intermediaries. It also facilitates the payment of external commitments, the import of goods and greater circulation of currency within the country, which could have effects on the exchange market and economic activity in general.

However, the scope of the relief is limited. Other sanctions, especially those directed at officials, state companies and strategic sectors, are still validand the flexibility can be reversed if certain political conditions demanded by the United States are not met.

In summary, the change does not imply full normalization, but it does modify a key element: Venezuela goes from having severe difficulties in using its own money to recovering, at least partially, the ability to move it within the international financial system.

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