Venezuela's central bank orders mandatory interest on all bolívar deposits

The Central Bank of Venezuela (BCV) has issued a measure requiring banks to pay interest on all bolívar deposits starting September 15, 2026. According to the portal Efecto Cocuyo, the resolution raises the minimum annual rates for savings deposits from 32% to 42%. Likewise, the portal Contrapunto reported that demand deposits (funds that the customer can withdraw immediately) will carry a minimum annual interest rate of 10% from the same date.

In banking practice, deposit rates represent the return that financial institutions pay citizens for keeping their money in the bank. When inflation is extremely high, the value of money erodes rapidly. If the interest rates paid by banks are far below the pace at which prices are rising, savers suffer a constant loss of purchasing power, a phenomenon known technically as negative real interest rates.

This decision by the monetary authority comes amid persistent inflationary pressure. According to data from the International Monetary Fund, Venezuela recorded annual inflation of 252.0% in 2025. For 2026, projections from the same international body estimate that annual inflation will climb to 387.4%, placing the new mandatory bank returns far below the general rise in prices in the economy.

José Guerra, an economist, told the portal Descifrado that this set of monetary measures implemented by the BCV does not encourage holding bolívares in any way, warning that, unless a structured economic plan with international assistance is adopted, the country will continue to suffer severe inflationary problems. Going forward, the question will be whether the national banking system has enough financial room to sustain these mandatory payments without restricting credit to productive activities.

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