Three major financial institutions—BNC, Banesco, and Mercantil—now control 50% of all foreign currency deposits held in freely convertible accounts in Venezuela. This concentration of dollar-denominated liquidity occurs as the Venezuelan banking sector adapts to a “de facto” dollarization of the economy, according to data reported by Banca y Negocios.
The shift reflects a broader trend in the Venezuelan financial system where the Central Bank of Venezuela (BCV) has actively intervened to manage exchange rate volatility. In the first half of the year, the BCV sold $7,000 million in foreign currency to stabilize the market, as reported by acn.com.ve. This liquidity injection has flowed significantly into the largest private banks, altering the landscape of how citizens and businesses store value.
While the banking sector sees a surge in dollar deposits, the broader economy continues to struggle with price instability. Inflation in Venezuela rose to 13,8% in June, with an accumulated rate of 129%, according to data from Tenemos Noticias. This inflationary pressure drives the demand for “cuentas de libre convertibilidad” (freely convertible accounts), which allow users to maintain balances in foreign currencies to protect their purchasing power.
Market Concentration in Dollar Deposits
The dominance of BNC, Banesco, and Mercantil signifies a consolidation of trust and infrastructure within the private banking sector. According to Banca y Negocios, these three entities have captured half of the total deposits in freely convertible accounts. These accounts are critical for businesses that import goods and for individuals seeking a hedge against the devaluation of the bolívar.
Dollar Supply and Central Bank Intervention
The availability of dollars in the domestic market has increased significantly. Ecoanalítica reports that the supply of dollars in Venezuela has tripled, a development that suggests more foreign currency is circulating within the local economy rather than being held exclusively abroad.
The scale of this intervention is substantial. The BCV sold $7,000 million during the first six months of the year, according to acn.com.ve.
Banking Sector Growth and Inflationary Pressure
Despite the macroeconomic instability, the banking sector is reporting growth in terms of foreign currency volume. Asobanca, the Association of Banks of Venezuela, indicated that the volume of foreign currency operations in the first half of 2026 is projected to exceed the totals for the entire year of 2025, according to Finanzas Digital.
This trend is a direct response to the inflation figures reported by Tenemos Noticias, which placed June’s inflation at 13,8% and the accumulated rate at 129%. When the local currency loses value rapidly, the incentive to move funds into the freely convertible accounts offered by Banesco, Mercantil, and BNC increases.
Impact on Businesses and Consumers
Consumers are benefiting from the “tripled” supply of dollars noted by Ecoanalítica, as it makes it easier to obtain currency for imports. However, the high accumulated inflation of 129% means that even those with dollar accounts are seeing the real cost of living rise, as many goods and services are priced in dollars that track international inflation or local scarcity.
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