Name: Venezuelan bonds surge on uncertainty after Maduros arrest
Uploaded: 2026-01-05T04:18:51.168Z
Duration: 5 min 31 s
Description: Steve Hanke, Professor of Applied Economics at Johns Hopkins University, says the price action of Venezuelan bonds are based on the premise of regime change The former Economic Adviser to President Reagan also thinks whoever is the new leader of Venezuela should replace the bolívar with the USD to stabilize the country.

Steve Hanke, Professor of Applied Economics at Johns Hopkins University, says the price action of Venezuelan bonds are based on the premise of regime change The former Economic Adviser to President Reagan also thinks whoever is the new leader of Venezuela should replace the bolívar with the USD to stabilize the country.

Caracas

Venezuelan bonds have experienced a notable increase in value following the arrest of Nicolás Maduro, even though the broader regime remains unchanged. Investors are speculating on possible U.S. intervention and the prospects of debt renegotiation, but challenges persist due to ongoing political instability and the presence of hardline leadership.

Discussions in the U.S. focus on the legal and political ramifications of any military action in Venezuela, with debates over funding and public sentiment. Economic experts recommend dollarizing Venezuela to combat hyperinflation and restore stability, suggesting that such reforms could rapidly improve the country's economic outlook.

Venezuelan bonds surge on uncertainty after Maduro's arrest

and get to bonds. I mean, this is a country, Venezuela, which has technically been in default for probably more than a dozen years right now. With the events of the weekend, I think there is hope, and I think we've seen it in the price action in Venezuelan bonds, which have picked up noticeably over the last several weeks or so, that, you know, investors are going to be able to at least start getting, have some hope of getting their money back. I mean, Venezuelan bonds, last I checked there, if you're lucky, you're going to get 15 to 20 cents on the dollar. What are the prospects and what are the challenges before some of these investors can hope to get their money back? Because, I mean, there's the sovereign debt, there's a PDVSA debt as well. Well, I think the betting has been recently that there would be some kind of U.S. military action, and that the regime would change. And if the regime changed, then there'd be some negotiation about, you know, renegotiation of the debt, and the speculators would make a lot of money. So the price has been going up. But that's been based on the premise of a regime change. And as I indicated or implied earlier, we don't have a regime change. It's the same regime that's in there. The only thing that's changed is Maduro's out. And in my view, Maduro is not nearly as hardcore chavisimo as the existing or new regime that's in place right now. So it's a little bit tricky. They're betting on a regime change. And my point is, you might have had Maduro being plucked out of Caracas and taken to New York, but that didn't change the regime. Yeah, and rather than regime change, we've got the prospect of potentially more infighting, possibly even violence ahead, unless there's further action on the part of the president. Obviously, there are some Democrats in D.C. right now trying to rally support against that and try and get the president's Republicans to get on side to delay or even stop further funding of any sort of military operations in Venezuela. How is that going in your reading? Yeah. Well, my reading is point number one is that the American legal argument is basically null and void. This is a legal operation. It's clearly a lot of precedent under the Monroe Doctrine with the Roosevelt Corollary of 1904. There's no question about that. That there will never be any cases in the United States that the U.S. Supreme Court hears about this, believe me. That's one thing. Now, you're talking also about not only the legal but the political angle on the thing. And the political angle on the thing is if the American public finally figures out that President Trump isn't the peace president but the war president, and they will turn on him and the midterm elections will go very badly in the United States this year. That's my view. And they might very well turn on him. So there's a legal thing. I think that's going nowhere. But the political rhetoric and sentiment and so forth about the U.S. literally invading a foreign country. Yeah. I mean, you have a long history with Venezuela. You were advisor to the president or the leader before Chavez Caldera. Whoever ends up as the new leader of Venezuela, whether it's a he or a she, and even if it is titular, if you had the opportunity to advise him or her, what would you be telling them? Oh, step one is to get rid of the Bolivar and dollarize the country. You must do that to not only get rid of this inflation rate of 923 percent, but to establish stability. And stability might not be everything, but everything is nothing without stability. If you don't have stability, you can't fix anything. And the only way to ensure stability is to have a stable currency. And by the way, if you did dollarize right away, within a month, the inflation rate would be down pretty close to that in the United States. So that's the first step. And by the way, that might work into a dollar strategy that I actually have been advising the Trump administration on, and that is to be promoting the dollar through dollar-based stable coins. I think the best way to go and the safest way is just get rid of the central bank, get rid of the peso, but the Bolivar, and replace it with the U.S. dollar. That's it. Okay, gotcha.

AI_GENERATE_PLACEHOLDER--------------------------------

Paris

Ukraine Invasion

U.S. backs security guarantees for Ukraine at summit of Kyiv's allies

South African President Cyril Ramaphosa has expressed deep concern over recent U.S. military action in Venezuela, calling for the immediate release of Venezuelan President Nicolás Maduro and his wife.

Soweto

Ramaphosa urges UN action after U.S. capture of Maduro

At least 25 people have been killed in Iran during the first nine days of protests that started in the bazaar of Tehran over the plunging value of the currency and soaring inflation, according to rights groups. This video contains graphic images.

Tehran

Rights groups say at least 25 dead in Iran protests

The administration of President Donald Trump is planning to meet with executives from U.S. oil companies later this week to discuss boosting Venezuelan oil production after U.S. forces ousted its leader Nicolas Maduro, according to a source familiar with the matter.

Washington

Trump administration sets meetings with oil firms on Venezuela: source

Uncertainty in Venezuela has crossed into neighboring Colombia, especially after U.S. President Donald Trump suggested Colombian President Gustavo Petro could face U.S. action following the capture of Nicolás Maduro.

Bogotá

Tension rises in Colombia after Maduro’s capture

Nicolas Maduro appeared in a US courtroom on January 5, 2026. He pleaded "Not Guilty" to drug trafficking and other charges, insisting he is still Venezuela's president. Maduro's kidnapping is being justified by the Trump administration as a "surgical law enforcement operation", but what proof is the case resting on?

New York

Maduro pleads 'not guilty' in U.S. drug trafficking case

Local authorities in Crans-Montana admitted failing to conduct fire and safety inspections at Le Constellation bar, where a fire killed 40 and injured 116 during New Year celebrations.

Crans-Montana

Swiss Alps bar not inspected for five years prior to deadly fire

Twelve Israeli military vehicles have entered the Quneitra countryside in southern Syria. Several villages there have been the target of repeated Israeli raids in recent months. Tuesday's incursions come as discussions between an Israeli and Syrian delegation are expected to continue in Paris - mediated and coordinated by the U.S.

Beit Jinn

Israeli army vehicles enter southern Syria ahead of Paris talks

Following the largest anti-corruption investigation of his presidency, Volodymyr Zelenskyy has launched a significant shake-up of the government and his office, with a series of dismissals and appointments in top political and security roles.

Kyiv

Ukraine's security service chief resigns amid Zelenskyy's reshuffle

The capture of Nicolás Maduro is prompting strong reaction from Venezuelans in the United States, and those who fled across the border into Colombia. Lilia Luciano has more on the two women vying to lead the country. Then, Cristian Benavides reports on opposing viewpoints on U.S. intervention.

Venezuela Strikes

Two women vying to run Venezuela amid opposing viewpoints

Police and the Secret Service are investigating a break-in at Vice President JD Vance's Ohio home. CBS News' Shanelle Kaul has more.

Cincinnati

Vice President JD Vance's Ohio home broken into

Ousted Venezuelan President Nicolás Maduro and his wife pleaded not guilty Monday to federal drug trafficking and weapons charges, days after they were captured by U.S. military forces in a stunning overnight operation and brought to New York City for prosecution.

Manhattan

Maduro, wife plead not guilty to charges in New York

A Paris court on Monday (January 5) found 10 people guilty of the cyber-harassment of France's first lady, Brigitte Macron, for spreading false claims that she is a transgender woman who was born male.

Ten convicted for cyber-bullying France's Brigitte Macron

Nicolás Maduro's vice president, Delcy Rodríguez, was officially sworn in as Venezuela's acting president. President Donald Trump warned he could go after her if she doesn't comply with U.S. demands, including access to the country's oil supply.

Trump says U.S. "in charge" of Venezuela

A Paris ​court on Monday found ten people guilty ⁠of the cyber-harassment of France's first lady, Brigitte Macron, for spreading false claims she is a transgender ​woman who was born a man. The court convicted all defendants to sentences ranging from a cyberbullying awareness training to 8-month suspended prison sentences.

Ten people found guilty of cyberbullying Brigitte Macron

Venezuelan President Nicolás Maduro is set to appear in a U.S. court on Monday (January 5) on drug charges after his controversial capture by American forces. President Donald Trump says he could order another strike if Venezuela’s interim government doesn’t cooperate.

Trump warns of second strike as Maduro faces U.S. drug charges

Former Venezuelan President Nicolás Maduro is being housed at Metropolitan Detention Center, Brooklyn, after he was captured by U.S. forces and flown to New York to face federal drug trafficking and weapons charges.

Maduro held in same jail as Sean "Diddy" Combs, Luigi Mangione

Police have identified all 40 victims who died in a New Year's Eve bar fire in Crans-Montana, Switzerland, including multiple teenagers. Two managers of Le Constellation bar have been placed under investigation for criminal negligence, according to prosecutors.

Police identify all 40 victims of Swiss bar fire

Seized overnight from their home on a military base on Saturday, Venezuela's toppled leader Nicolás Maduro and his wife are now being held in a New York detention centre. The apprehension is the U.S.'s most controversial in Latin America since the invasion of Panama 36 years ago.

U.S justifies Venezuela operation to capture Nicolás Maduro

As Venezuela grapples with the capture of Nicolás Maduro, the country’s top court has named Delcy Rodríguez as the acting president. The 56-year-old has served as Venezuela’s vice-president since 2018.

Venezuela’s top court names new president after Maduro’s ouster

Sunday's launches came hours before South Korean President Lee Jae Myung departed for China for a summit with President Xi Jinping, for talks expected to cover North Korea's nuclear program.

Pyongyang

North Korea carries out new ballistic missiles test

The strikes occurred Saturday evening on an underground facility in the mountains just north of the historic town of Palmyra in Homs province.

Palmyra

British, French warplanes strike suspected IS facility in Syria

At least 30 people have been killed and several others abducted after gunmen attacked a market in Nigeria’s Niger State, according to police. The attackers stormed Kasuwan Daji market in Demo village on Saturday afternoon, setting stalls on fire and looting food.

Niger

At least 30 killed in market attack in Nigeria’s Niger State

Pope Leo has expressed deep concern over the recent U.S. raid in Venezuela, urging that the well-being of the Venezuelan people must take precedence over all other considerations.

Rome

Pope voices concern over U.S. raid in Venezuela, calls for peace

Venezuelan President Nicolas Maduro was in a New York jail Saturday, hours after American special forces seized and flew him out of his country — which President Donald Trump said would come under effective U.S. control.

Venezuela's Maduro arrives in New York after being abducted by U.S.

President Donald Trump says the people of Venezuela are now free of Maduro's dictatorship. But Venezuela's vice president has demanded the US send Maduro back, calling him the rightful president.

Trump says U.S will ‘run’ Venezuela after Maduro seized

After their capture, former Venezuelan leader Nicolás Maduro and his wife were flown to Stewart International Airport, 60 miles north of New York City, then will be helicoptered to Manhattan. They will be processed at the headquarters of the Drug Enforcement Administration. Ali Bauman reports.

U.S. treating Nicolás Maduro like a drug kingpin, federal authorities say

Venezuelan President Nicolás Maduro is in New York after he was captured by U.S forces during a daring raid. President Trump said the U.S. will be running the Latin American country, for now.

First images emerge of Nicolás Maduro after capture by U.S.

No U.S. service members were killed in the military operation in Venezuela, the Trump administration said. CBS News national security correspondent Charlie D'Agata has more details.

No U.S. service members killed in Venezuela operation, Trump administration says

The United Nations, along with a host of countries including France, China and Russia have criticized U.S strikes on Venezuela and capture of Nicolás Maduro as a violation of international law.

Breakdown