Venezuelans are rushing to buy dollars amid concerns that the Trump administration's actions are impacting the country's oil industry and economy negatively. Following Trump's announcement of a 25% tariff on countries purchasing Venezuelan oil, major buyers such as India's Reliance Industries Ltd. and Spanish firm Repsol have halted or rerouted shipments, causing the bolivar to plummet to record lows.

The decline in oil revenue is leading to a shortage of dollars, prompting businesses and individuals to turn to the black market for currency exchange. The parallel exchange rate has significantly weakened, reaching 106 bolivars per dollar compared to 66 at the beginning of the year. This move by the US administration is considered the most significant action taken against the Venezuelan government in terms of cash flow and oil production impacts.

The economic instability comes at a challenging time for Venezuela, with the economy projected to contract this year for the first time since 2020. With the central bank's liquid reserves depleting, oil revenue is critical to supplying dollars to the official market. Chevron Corp. faces a 60-day deadline to cease operations in Venezuela, following a reduction in dollar sales to the exchange market earlier this year.

Maduro's options are limited, but one suggested approach is to relax regulations on retailers to allow price adjustments based on market rates. Without effective measures, the situation could deteriorate further, according to economists at Ecoanalitica.