MercoPress. South Atlantic News Agency
Venezuela auctions dollars; value is estimated at double the official rate
Venezuelan government foreign currency auction for local importers has triggered de-facto currency devaluation, the second in less than 50 days, analysts said. Venezuela has had strict currency exchange controls since 2003 in an attempt to halt capital flight, under which the government sold limited amounts of foreign currency at an official rate. Read full article
Comments
Disclaimer & comment rulesCan someone tell me why Latam countries have two exchange rates ( U$S ) and why the governments are not closing the loophole
Apr 01st, 2013 - 10:06 am - Link - Report abuse 0what exactly do you mean with ”why Latam countries have two exchange rates ( U$S )”
Apr 01st, 2013 - 10:37 am - Link - Report abuse 0Might it be you mean Venezuela and Argentina only ?
Do you realize that these are only 2 nations out of 21 and you cannot generalize, same as I cannot generalize Europeans being disguised dictatorships because of 2 nations like Belarus and Russia?
Do the citizens of the Venezuela and Argentina know that they are going into hyperinflation and there is no way to avoid it?
Apr 01st, 2013 - 10:48 am - Link - Report abuse 0@2 Does “golfcronie” mean why do Latam countries have an “official” and an unofficial exchange rate?
Apr 01st, 2013 - 11:09 am - Link - Report abuse 0I see the bus driver is doing everything he can to bamboozle the peons into thinking he is Chubby MkII, including accusing the opposition parties of being Nazis.
Apr 01st, 2013 - 01:44 pm - Link - Report abuse 0But he is right, they will elect him: that will start the inevitable demise of Chavezism and allow Capriles to take charge, if he has not been murdered by the CIA, aka The Bus Driver Squad.
Cannot the people of Argentina see that where Venezuela goes today, they go tomorrow?
@4
Apr 01st, 2013 - 01:44 pm - Link - Report abuse 0We don't have official and unofficial exchange rates. As ManRod correctly states @2 just because a couple of countries do, doesn't mean all do.
@6 I understand what you're saying BUT, if it's not front-page news, how many ordinary citizens actually know what goes on? For instance, this paper http://www.cepr.net/documents/publications/exchange-rates-latin-america-2010-04.pdf suggest that there may be more dual or parallel exchange rate regimes than currently thought. Read the section A Panoramic View - The 2000s.
Apr 01st, 2013 - 02:33 pm - Link - Report abuse 0conqueror
Apr 01st, 2013 - 02:44 pm - Link - Report abuse 0One exchange rate is for rich gringos, the other one is for normal people.
8 Stevie
Apr 01st, 2013 - 04:20 pm - Link - Report abuse 0You are back, been on holiday?
Glad I am a rich gringo!
9
Apr 01st, 2013 - 04:24 pm - Link - Report abuse 0You are indeed a poor rich gringo.
If I recall the European state of Transnistria is also a dictatorship, but I could be wrong.
Apr 01st, 2013 - 04:56 pm - Link - Report abuse 0The article mentions that over-valuing a currency, compared to market demand for it, makes a country's exports more expensive.
Apr 01st, 2013 - 07:10 pm - Link - Report abuse 0Another consequence is that this practice holds a country's deficit at higher levels.
This currency topic is all confusing to me.
What are the economic forces that ultimately force a government to de-value it's currency.
How come Maduro has done this, but CFK has not?
Shed-time, you have to consider that Transnistria is not an internationally recognized state, but a rebellious separatist region. So I guess they cannot count as an official dictatorship (yet)
Apr 01st, 2013 - 09:44 pm - Link - Report abuse 0Commenting for this story is now closed.
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