Full Breakdown
Venezuela’s Assembly Dismisses Dollarization Advocate Amid Hiring Rumor
8/23/2026, 9:09:35 PM
Core Event
On August 22, Assembly president Jorge Rodríguez removed Deputy Antonio Ecarri from the Venezuela-United States Parliamentary Friendship Group and announced an internal probe after media reports claimed the Assembly had hired U.S. economist Steve Hanke to advise on dollarization. Rodríguez said the allegation was false and that monetary policy remains the exclusive domain of the executive and the Central Bank of Venezuela (BCV).
Background & Context
Venezuela’s hyperinflation, now around 576 % annually, has pushed most daily transactions into U.S. dollars—a “spontaneous dollarization.” Hanke, a Johns Hopkins professor known as the “Money Doctor,” has publicly advocated full dollar adoption, arguing that price stability is needed for economic recovery. He has previously advised Montenegro, Ecuador and Zimbabwe on similar reforms.
Official Statements & Responses
- Jorge Rodríguez stressed the Constitution designates the bolívar as the sole monetary unit and gave the BCV exclusive policy authority. He called the hiring reports “absurd and poisonous” and pledged a probe of any legislators spreading the claim.
- Antonio Ecarri defended his proposal, saying a stable currency would protect teachers, nurses, workers and pensioners.
- Steve Hanke, speaking to *Fortune*, said taming inflation is key to stability and that swift dollarization could shift Venezuela from negative to positive growth within a year.
Data & Statistics
- Inflation: ~576 % annualized.
- Currency depreciation: the bolívar has lost about 78 % of its value against the dollar over the past year.
- Sovereign debt: roughly $250 billion, about 150 % of GDP.
Conflicting Reports & Gaps
- *Fortune* reports Hanke has been named a special advisor to a leading Assembly member and is estimating the likelihood of a dollarization bill’s passage.
- Rodríguez’s office denies any contractual relationship with Hanke, describing the reports as fabricated and launching an investigation into the rumor’s source.
- No independent documentation of a formal advisory contract or legislative draft authored by Hanke has been found.
Verbatim Quotes
- “Taming inflation is the key to restoring stability in Venezuela, and all the other progress flows from that,” — Steve Hanke
- “For the past two or three days, I have been reading in international media that the National Assembly has hired the so-called ‘money doctor,’ a man named Steve Hanke, to help us fight hyperinflation,” — Jorge Rodríguez
- “Venezuela is already effectively dollarized. But those who continue to be paid in bolivars, which is losing value every day, are our teachers, nurses, workers, and pensioners. Enough is enough,” — Deputy Antonio Ecarri
Why It Matters / Impact
A formal switch to the U.S. dollar would eliminate the bolívar, transfer monetary sovereignty to the U.S. Federal Reserve, and could attract foreign investment to the oil sector. Proponents say it would generate dollars needed to service debt and lower interest rates, spurring borrowing and investment. Opponents warn it would deepen dependence on external actors and breach constitutional safeguards of economic autonomy.
What’s Next
The Assembly’s board will continue its investigation and may impose sanctions on Deputy Ecarri. No further dates or scheduled hearings have been disclosed.
