Venezuela presents IMF with plan to increase oil production — The Rio Times

Venezuela has presented a plan to increase oil and mineral extraction, with the proceeds intended to be directed toward restoring water and electricity supply systems. The country’s Vice President for Economic Affairs, Calixto Ortega, presented the initiative on October 14 at the annual meetings of the International Monetary Fund and the World Bank in Bangkok, Thailand.

As The Rio Times reports, Ortega described oil and mineral extraction as Venezuela’s main sources of foreign currency revenue. According to the Central Bank of Venezuela, the plan also provides for directing revenues toward basic public services, reducing inflation to a double-digit level, restructuring public debt, and simplifying bureaucratic procedures.

Revenues for restoring services

Ortega said the new revenues should be used to restore water and electricity services, which, according to him, had been neglected for a decade. Residents of the eastern state of Monagas, according to El Pitazo, reported power outages lasting up to six hours a day.

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The vice president also said that since the beginning of the year, the government has been working to return the country to the international financial system and settle the issue of public debt. According to EFE, Venezuela restored relations with the IMF in April after a break that had lasted since 2019.

Rejection of dollarization

Ortega rejected Venezuela’s transition to the US dollar as its national currency. According to him, the country must strengthen the bolívar, which in the medium term should cover the entire domestic economy. At the same time, the dollar remains the main price benchmark in Venezuelan stores after the period of hyperinflation in 2017–2021.

The official exchange rate on October 14 was 877.90 bolívars per US dollar. In its October forecast, the IMF expects Venezuela’s economy to grow by 5% in 2026 and 7% in 2027, while inflation at the end of 2026 is projected at 467.9%.