JAKARTA - The exchange rate of the Venezuelan bolivar (VES) against the United States dollar (USD) again set a record low at 69.3519 VES per USD on Friday (28/3) today.

Since the beginning of this month, the VES exchange rate against the USD has fallen 7.82%. Meanwhile, since the beginning of this year, the decline has reached 17.45%.

This week, Trump announced a 25% tariff on countries that buy oil from Venezuela, the 5th largest oil producer in Latin America.

The threat of tariffs has made a number of oil buyers from India to Europe switch to buying oil from other countries.

According to Alejandro Grisanti, director of consulting firm Ecoanalitica, this is the US government's harshest blow to Venezuela. This policy is also feared to trigger inflation and economic stability, which has been achieved by the Nicolas Maduro government.

‘The government could further loosen regulations, which could favour foreign currency operations,’ said Jesus Palacios, Economist at Ecoanalitica, as quoted by Bloomberg today.

If no mitigation measures are taken, Palacios said, then the situation in Venezuela is expected to get worse. (KR/LM)