TPS to Venezuelans: Another Economic Respite for Venezuela with the Increase in Remittances from the United States

With Venezuelans authorized to work in the United States, it is expected that remittances to that country will again position themselves towards 2, 500 millions of dollars

Photo: Jan Vašek / Pixabay

The TPS can mean a positive economic benefit for Venezuela. Waiting for some 500, 000 Venezuelans residing in the United States benefit from the temporary protected status granted by President Joe Biden; It is highlighted that this benefit not only means a humanitarian advantage but also an economic advantage.

This is due to a calculation that results in Venezuelans beneficiaries of TPS could increase economic aid to that country through remittances. Going from almost 900 million dollars to 2 ,500 millions of dollars. According to information given to the “Descifrado” portal by the economic analyst and former Venezuelan minister, Tomás Socías López.

The TPS is the temporary immigration status granted to nationals of a specific country

With the TPS hundreds of thousands of Venezuelans residing in the United States, will obtain not only a permit to stay safe by 18 months but also a work permit. So it is assumed that being authorized to work, there will be an increase in sending remittances to their native country .

Likewise, the Venezuelan analyst indicated that probably come more policy announcements that President Biden will take and that will benefit the country , including a “relaxation of global sanctions, but adjusting individual sanctions.”

By Therefore, for 2021 it was estimated that the level of economic activity of Venezuela would determine it “private consumption and remittances.”

Studies show that the 70% of Venezuelans living in the United States send to their country the 25% of your income . In 2020, Venezuelans sent more than 870 millions of dollars in remittances, which meant a decrease compared to previous years.

Meanwhile, it is estimated that only the 40% of Venezuelan households receive remittances from a relative or friend who lives abroad. We will see if this percentage will increase at the rate that the amount in millions of dollars of remittances sent increases.

In Venezuela the dollar occupies more than 55% of the total value of transactions carried out today in the country. And the percentage is probably higher, but we are talking about a country in which transparency in statistics is difficult to achieve.

With a current minimum wage of less than $ 2 per month. Socías López assures that she handles information about proposals and pressures that divide the government cabinet of Nicolás Maduro, about an increase in the minimum wage to 30 Dollars. In addition, “they propose to wait for more stability to reduce the zeros to the currency,” said the specialist from Washington DC