Venezuelan small and medium-sized enterprises (SMEs) are grappling with a severe dollar shortage due to U.S. sanctions and exclusion from the official foreign exchange allocation system. Over half of the surveyed companies report that the lack of foreign currency has significantly hindered production. With foreign exchange auction volumes down 13% year-on-year and large multinational corporations monopolizing available dollars, many local pharmaceutical and chemical companies have resorted to the unofficial market or cryptocurrency for cross-border raw material procurement and settlement. This shift has contributed to soaring local prices and an inflation rate reaching as high as 600%.