The Venezuela crisis has become one of the most talked-about topics in the world. This is because the United States has arrested Venezuela’s President, Nicolas Maduro. Along with this, the US also seems to be taking control of Venezuela’s huge oil reserves.
While these events have shocked the world, something very surprising is happening inside Venezuela. Instead of crashing, the Venezuela stock market is rising very fast. In just one day, the Caracas Stock Exchange jumped by 50%.
US Action Increases Global Tension
US President Donald Trump took strong action against Venezuela. On the night of 2–3 January, the US carried out a military strike in Venezuela. During this operation, President Nicolas Maduro and his wife were arrested and taken to New York.
Trump also claimed control over Venezuela’s oil sector. He said that American oil companies would enter the country. This statement created tension in the global energy market.
Later, Trump posted on his social media platform Truth Social that a temporary government in Venezuela would send 30–50 million barrels of oil to the US. He also said that the money earned from this oil would be under US control.
Also Read-: Venezuela Oil Crisis Explained: Trump, China, and the Global Energy Game
A Crisis That Boosted the Market?
The most shocking part is this: Venezuela faced a US strike, its president was arrested, and control over its resources was challenged. Yet, the stock market did not fall.
Instead, the Caracas General Index rose by 50% in one day. On 6 January, the index jumped by 1,299 points and closed at 3,896.8.
Big Rise After Maduro’s Arrest
After Nicolas Maduro’s arrest, the market continued to rise sharply.
- On 2 January, the index was at 2,231
- By 6 January, it crossed 3,896
This means a rise of more than 74% in just a few days.
If we look back to 23 December, when the US started increasing pressure on Venezuela, the stock market has risen by nearly 150% since then.
The Caracas Stock Exchange, started in 1947, is the smallest stock exchange in South America.
Why Is Venezuela’s Stock Market Rising?
So why is the market going up during such a serious crisis?
According to reports, investors believe that US involvement may bring political stability and economic reforms to Venezuela.
Venezuela has been under US sanctions for many years. Investors now hope that these sanctions may be reduced or removed, which could bring foreign investment and improve the economy.
This positive investor sentiment is the main reason why Venezuela’s stock market is rising instead of falling.