Venezuela’s central bank is moving to squeeze liquidity in the banking system in a bid to support the bolivar ahead of an expected boost in government spending. Policymakers raised penalties for lenders that fail to meet the mandatory reserve requirement — a percentage of deposits they need to park at the central bank. They also increased deposit and some lending rates, among other measures published by the central bank in the official gazette dated Friday and which was circulated to market participants on Tuesday. The new rules are part of an effort to tighten policy in anticipation of increased fiscal spending and as the central bank sells fewer dollars into the official exchange market. Sintesis Financiera, a Caracas-based financial consulting firm, estimates the sales, financed through oil exports, will drop 21% in September.

“The aim is to protect the exchange rate by sacrificing credit even further, precisely when the economy needs financing,” economist and consultant Asdrubal Oliveros wrote on X over the weekend. “The problem is the cost of that strategy — as usual.” Representatives for the Venezuelan government didn’t reply to a request for comment. Venezuela has been pouring billions of dollars into the market to stabilize its weakening currency, particularly since the capture of strongman Nicolas Maduro in early January by US forces fueled uncertainty about the future of the cash-strapped economy. The Trump administration has been overseeing the nation’s access to revenue from oil sales, some of which is channeled through local banks and sold to businesses and individuals. The central bank has sold $11 billion into the local currency market this year, according to Sintesis Financiera, helping to narrow the gap between the government-set exchange rate and the price of dollars in the parallel market to less than 20%.

“This rhythm is unsustainable,” the firm’s analysts wrote in the report, adding that the $11 billion figure is equivalent to 58% of oil exports. “It is almost identical to oil-related fiscal revenue and leaves no room to cover other public-sector foreign currency needs.”