"Following the US’s invasion of Venezuela on January 3 and abduction of President Nicolás Maduro and First Lady Cilia Flores, President Trump promised to “restore prosperity” to the country. His administration has now recognized the Delcy Rodríguez government and issued general licenses to ease sanctions on oil and mineral production, as well as licenses to disburse the proceeds from US-managed sales of Venezuelan oil. These measures have raised hopes that stability might be returning to an economy long stifled by Washington’s siege. But a key factor in any process of stabilization has so far been overlooked: the fortunes of the Banco Central de Venezuela (BCV).
In 2005, amid escalating tensions, the George W. Bush administration began to consider the use of sanctions against Venezuela, announcing an arms embargo the following year. A decade later, President Obama declared a “national emergency” with respect to Venezuela, deemed the country an “unusual and extraordinary threat” to US national security, and imposed sanctions on various state officials, explicitly naming the BCV as a part of the government. In 2019, the Trump administration went further, refusing to recognize the Maduro administration, removing its Federal Reserve certification and sanctioning the BCV as a part of its “maximum pressure” campaign to foment regime change.
The central bank sanctions and decertification of the BCV affected Venezuela’s entire economy and caused widespread suffering among its population. BCV is not just a government bank. As in most countries, it is a bank of banks for the public and private sector alike, acting as the “clearinghouse of the financial system.” Sanctions against a central bank therefore not only target the incumbent administration; they incapacitate the country’s entire financial infrastructure. Lifting them will be essential for Venezuela to recover."
https://www.phenomenalworld.org/analysis/producing-scarcity/
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