Maduro with more power on economic affairs; devaluation of the Bolivar in the agenda

Thursday, December 27th 2012 - 19:49 UTC

Full article 2 comments

Venezuelan president Hugo Chavez delegated certain responsibilities in economic affairs to Vice-President Nicolas Maduro including the right to authorize debt sales and seize assets. The announcement comes at a moment when significant economic decisions must be taken following the profligate spending leading to last October’s election. Read full article

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British_Kirchnerist
From what little I know of the subject I think devaluing the bolivar would be a good policy; oil always leads to highly or over valued currencies - I think both the Kuwaiti and Jordanian currencies are higher than the British pound...
Dec 28th, 2012 - 07:39 pm - Link - Report abuse 0
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Anglotino
The Jordanian dinar? Funny comparison considering Jordan doesn't have any oil.

Anyway, devaluing the Bolivar would be considered an economic failure and make imports much more expensive for the people that support Chavez.

The main reason such an increase in the cost of imports would be so very bad is due to Chavez's economic policies that have decimated the non-oil economy and forced Venezuela to essentially import everything it needs.

A devaluation (which will happen no matter what) will hurt the very people the 'revolution' supposedly helps the most.

You do indeed show that know little of the subject.
Jan 02nd, 2013 - 10:22 am - Link - Report abuse 0
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