(Bloomberg) -- Venezuela’s government is ramping up dollar sales to contain inflationary effects resulting from Nicolás Maduro’s presidential campaign spending.
The central bank has sold about $525 million to the local market this month, nearing a 2022 monthly record of $627 million, as the government increases spending around the upcoming presidential election, according to estimates by Caracas-based financial analysis firm Síntesis Financiera. This month’s cash injections are already higher than June’s total sales, when the bank supplied the market with about $420 million.
The central bank supplies the official market by selling dollars through the local banking system, seeking to fulfill demand for greenbacks and limit currency moves.
The move shows the extent of the government’s efforts to keep the official exchange rate from sliding amid a spike in public spending ahead of the July 28 vote. Total spending is estimated to increase by about 35% in July, Síntesis Financiera reported on July 15.
Maduro, who is seeking reelection for a third consecutive term, has been campaigning across the country for weeks. Former diplomat Edmundo González, the opposition’s candidate, is currently leading most polls by about 20 percentage points.
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