What's happening with Venezuela's economy now? And has there been more freedom?

A woman and a girl in school uniform walk past a mural with the inscription "Venezuela — Zone of Peace" in the Fort Tiuna residential area in Caracas — against the backdrop of the political crisis and the continued strong presence of security forces. Photo: Darwin Diko Canas / Anadolu via Getty Images

As writes The Wall Street Journal, the current situation in the country more closely resembles an economic transformation under external control than a "dawn of democracy." Although Maduro is no longer in power, his regime has largely persisted: the country is governed by his associate and Vice President Delcy Rodríguez. Armed special service agents in masks can still be seen on the streets of Caracas, a reminder of the previous leader's repressive legacy.

Changes in the Economy

The economic shifts that have occurred in a short period look truly impressive and give people hope for the first time in a decade.

As the WSJ writes, the American side has already realized Venezuelan oil worth $500 million, and $300 million of these funds have been promptly directed to local banks to support the national currency — the bolivar. In the coming days, another tranche of $200 million is expected to arrive.

The currency market instantly reacted to the changes: on the Binance crypto exchange, the bolivar strengthened from 800 to 450 per dollar, approaching the official rate of 360 bolivars.

Nevertheless, currency problems have not disappeared. Suppliers of imported goods, such as car parts, demand payment in dollars, which are difficult to obtain. In Caracas, prices are often indicated in dollars or euros, while in border areas, Colombian pesos and Brazilian reales are common.

Павялічыць

Workers unload food packages at a state-subsidized market in Caracas — part of a system for distributing basic products to the population against the backdrop of a long-standing economic crisis. January 25, 2026. AP Photo / Ariana Cubillos

The strengthening of the local currency has led to a significant correction in food prices. For example, the price of meat has decreased by almost 60%: while a pound (half a kilo) of beef cost more than $10 in December, it can now be bought for approximately $5.

According to Italo Atencio, who heads the national association of supermarkets, this price reduction initially affected perishable goods — meat, chicken, and eggs — but soon the positive trend should extend to basic products such as rice and corn flour.

Rodríguez's government is acting quickly, striving to revive the economy, which has contracted by 70% since 2013. This week, a package of new laws is being prepared for adoption, which should radically change the rules of the game.

These reforms envision the complete elimination of bureaucratic obstacles in the energy sector and a significant weakening of state control over the oil industry, which is necessary to attract large foreign capital. Additionally, the government plans to abandon arbitrary price controls, which previously only stifled private initiative.

Павялічыць

A vendor at a local market in Caracas holds bolivar and dollar banknotes. Photo: Bloomberg via Getty Images

American businesses are already preparing for a return. Executives from US oil companies are planning to come to Caracas, and Energy Minister Chris Wright plans a personal visit. In addition, the reopening of the US embassy, which has been closed since 2019, is being prepared. This has already caused a real estate boom and triggered a rapid rise in quotations for Venezuelan government bonds on international platforms.

Will there be democracy?

Despite the economic optimism, the question of power remains open. Critics cited by the WSJ argue that Rodríguez is not taking on any real obligations regarding the conduct of free and fair elections.

Political scientists call her a cunning and experienced player who managed to appeal to Trump (he called her work "fantastic") while consolidating her own power.

As AP reports, citing the Venezuelan human rights organization Foro Penal, since January 8, when authorities promised to release a "significant number" of prisoners as part of a national reconciliation policy, 266 political prisoners have been released from prisons, with about 100 people released last weekend.

Authorities claim significantly higher numbers. Delcy Rodríguez states that her administration has already released more than 620 people, and she is even ready to invite the UN High Commissioner for Human Rights to verify the lists. Interior Minister Diosdado Cabello operates with a figure of 808 people, though he cynically states that there have never been political prisoners in the country, and those being released are allegedly common criminals.

Павялічыць

Political prisoners leave the Tocuyito prison. January 25, 2026. Photo: AP Photo / Jacinto Oliveros

Human rights activists, however, consider these figures inflated and remind that at least 600 dissidents remain behind bars. Among them are activists of the Vente Venezuela party, led by Nobel laureate María Corina Machado. While authorities and public organizations dispute statistics, relatives of the imprisoned continue regular pickets near prisons, demanding their release.

As Venezuelan opposition leader María Corina Machado recounts in an interview with The New York Post, after Nicolás Maduro's arrest, repression did not disappear, but only changed its form. Now, Machado asserts, the country is governed through fear.

According to her, it was Delcy Rodríguez who built the system of torture that remains the foundation of power today. "Terror is the only thing that sustains this regime," believes the opposition figure.

At the same time, Machado notes, the situation has begun to change: students across Venezuela are holding open protests, blocking roads, and demanding the release of political prisoners. She emphasizes that such actions were "simply impossible" until recently.

As the WSJ notes, for many ordinary people, the time of real political changes still seems hopelessly distant. According to the publication's assessment, the situation in Venezuela has become a practical application of the "Trump amendment" to the Monroe Doctrine — a principle according to which the US dictates the rules of the game in the Western Hemisphere.

For Venezuelans, this means a unique deal: improved daily life and economic stabilization in exchange for democracy postponed indefinitely and limited political rights. As the WSJ notes, a similar compromise has long existed in authoritarian states — from Saudi Arabia to China.

Nevertheless, as former public activist Rafael Ortega told journalists, he fears that Rodríguez will not be able to control the army and paramilitary groups. At the same time, the man hopes that by July, the country will be able to start moving towards democratic elections, and the regime's sworn enemy, opposition leader María Corina Machado, will be allowed to return from exile and run as a candidate.

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