In central Venezuela, the owner of a medium-sized pharmaceutical factory is struggling to secure U.S. dollars needed to import chemical ingredients and other supplies required for producing headache and fever medications.

However, like many business owners in Venezuela, his efforts are often in vain. Despite government assurances of improvement, small and medium-sized enterprises continue to face significant obstacles: the official dollar allocation system is unfavorable to them, and dollar shortages persist.

"You have no idea what it will cost to restock, because you don't know when you'll be able to buy foreign currency or what the exchange rate will be," the business owner stated.

"The bolivars earned from sales are constantly devalued by inflation... In this situation, you still have to find ways to keep production going."

The owner, who asked not to be named, reported that his bids for dollars in government auctions have been rejected three times without any explanation.

Consequently, he is forced to turn to the unofficial market, where exchange rates are even less favorable. This situation compels him to increase medicine prices to cover his rising costs.

He is not alone in facing these challenges. Interviews conducted by Reuters with 10 Venezuelan business operators and finance industry professionals revealed that such complaints are widespread.

In fact, a survey released last month by Conindustria, Venezuela's private manufacturing industry association, showed that 58% of the country's medium-sized business owners cited foreign currency shortages as an obstacle to their operations. The use of cryptocurrency has emerged as an alternative method for business owners to pay for imported goods.

Sanctions Create Barriers Sanctions have effectively cut off Venezuelan banks from the global financial system, preventing them from using wire transfers and international payment platforms.

Dollars earned from the country's oil exports are only available through auctions conducted by local banks, with allocation amounts determined by the central bank and foreign correspondent banks.

Venezuela's Ministry of Communication, which handles all media inquiries, and the central bank did not respond to requests for comment.

Following the U.S. decision in January to overturn the government of President Nicolas Maduro, oil sales have increased, the hyperinflation-plagued economy has shown signs of stabilization, and the potential for increased U.S. investment had raised expectations for a greater supply of dollars.

However, local analysts estimate that the amount of dollars currently available for auction is actually lower than it was a year ago. The total auctioned from mid-January to early March was only $1.3 billion, a 13% decrease compared to the same period in the previous year.

"The auction amounts are very limited, accessible only to a few companies, and the allocation seems arbitrary," said a business owner in the chemical industry. Over the past two months, every auction application he submitted was rejected without reason, ultimately forcing him to purchase foreign currency on the unofficial market.