The Trump administration has relaxed financial sanctions on Venezuela’s state-run banking system. The move is designed to revitalize the nation’s struggling economy and support the new interim government led by acting President Delcy Rodriguez.

Through specific licenses issued by the US Treasury (OFAC), major Venezuelan state banks—including the Central Bank—can now legally use US dollars and directly receive billions in oil revenues. This replaces a blanket embargo with targeted authorizations.

The sanctions relief aims to resolve cash flow issues that sparked recent protests by public sector workers over low wages. Previously, US sanctions red tape had trapped Venezuela’s oil revenues, leaving Rodriguez caught between withholding promised salary increases or printing money and risking hyperinflation.

This action is part of a broader effort to rebuild economic ties following the US military raid that removed Nicolas Maduro from power on January 3. Recent steps include lifting individual sanctions on Rodriguez, authorizing US businesses to work with the state oil company (PDVSA), facilitating Venezuelan gold sales in the US, and a new Chevron agreement to expand oil production.

Originally imposed by the US in 2019 to cripple Maduro’s regime—which largely evaded them using cryptocurrency—the strict financial sanctions ended up unintentionally paralyzing the very US-backed interim government they helped install.