President Donald Trump and Venezuela’s newly established leadership have presented their cooperative relationship as a significant achievement, emphasizing increased oil revenues and improved economic conditions in the country. Last week, Trump stated that Venezuela "has become a happy country" due to expanded trade with the United States. Since assuming power, Delcy Rodríguez, who was appointed by Trump as Venezuela’s interim president, has engaged with global leaders to showcase the nation’s progress without U.S. sanctions. However, beneath this optimistic portrayal, the Venezuelan economy continues to struggle, and ordinary citizens remain largely unaffected by the claimed improvements.

Since Rodríguez took office, Venezuela has seen some regulatory oversight aimed at curbing corruption prevalent under former leader Nicolás Maduro. Nonetheless, inflation remains the highest worldwide at 524%, although it has been decreasing gradually. Despite modest wage increases, earnings remain below subsistence levels for most Venezuelans. The national currency, the bolívar, continues to decline in value, with unofficial exchange rates significantly exceeding the government’s official rate. This discrepancy perpetuates inflationary pressure and encourages capital flight, further complicating economic recovery.

Residents express frustration with the slow pace of change. Álvaro Espinoza, a jeweler in Los Teques near Caracas, criticized U.S. officials for failing to grasp the reality faced by Venezuelans. His sentiment reflects a broader decline in Rodríguez’s approval, which dropped to 25% in May, marking the third consecutive monthly decrease according to a poll conducted by the Brazilian firm AtlasIntel.

U.S. Secretary of State Marco Rubio acknowledges the challenges but argues that the ongoing reforms are beginning to channel Venezuela’s wealth to its people, although further efforts are needed. A State Department spokesperson noted improvements such as reduced inflation rates in May compared to earlier in the year, describing the economic changes as positive but incomplete. The Venezuelan Communications Ministry did not respond to requests for comment.

The Trump administration’s approach involves securing Venezuelan oil supplies while attempting to stabilize the broader economy and pave the way for future elections. However, this strategy has required U.S. officials to intervene extensively in Venezuela’s complex and distorted financial system. Over time, dollar flows linked to oil revenues have become concentrated in the hands of a limited number of Venezuelan companies and individuals with accounts in the United States. Much of this capital remains offshore and is not reinvested domestically, as sources familiar with the financial arrangements explained.

This increased U.S. involvement has sparked unease within Rodríguez’s own Socialist Party. Reports indicate that the presence of U.S. military aircraft at the Caracas embassy and the extradition of a prominent Maduro ally to face charges in Miami have been viewed internally as humiliating. Some party members are reportedly discussing alternatives to Rodríguez should new elections occur.

Despite heightened investor interest following the easing of personal sanctions on Rodríguez, broad economic sanctions remain largely in place. The Trump administration issues special licenses for companies looking to operate in Venezuela, but the country has experienced worsening electricity shortages this year. Experts attribute these outages primarily to drought impacting hydropower, though rising oil sector demands also strain the grid. Social unrest has increased, with protest frequency tripling compared to the previous year according to the Venezuelan Observatory of Social Conflict.

While oil exports, Venezuela’s main source of revenue, have risen for three consecutive months, economists and insiders caution that only a small portion of petrodollars remain within the domestic economy or benefit ordinary citizens. The persistence of Venezuela’s longstanding currency controls allows select companies and individuals to profit from exchange rate arbitrage rather than channeling funds toward productive investments, such as manufacturing or job creation.

Under the current system, payments for Venezuelan crude pass through a U.S.-held Citibank account, then flow to major Venezuelan banks, which sell hard currency to clients and transfer bolívares back to the government. The accelerating depreciation of the bolívar incentivizes recipients of U.S. dollars to either hold their funds abroad or sell them at the higher unofficial rates. As a result, currency speculation undercuts broader economic recovery and exacerbates hardships for everyday Venezuelans, whose real incomes continue to erode.