Increasingly Desperate Venezuela Makes Oil-for-Cash Deal With China

Venezuela is showing increasing signs of desperation as it takes out an additional $4 billion in loans from China in exchange for oil. The deal, announced July 21, will give embattled Venezuelan President Nicolas Maduro an immediate influx of cash, which he needs to keep the economy afloat. Average Venezuelans are suffering from a shortage of basic goods, food and medicine, and inflation hit an eye-popping 62 percent for the 12-month period ending in June. With foreign currency running short, President Maduro might seek a currency devaluation to boost the economy. But that route could also lead to more inflation and a worsening of the country’s economic crisis. More…