Leaders of the Venezuelan opposition have blamed President Nicolas Maduro's regime of causing the Bolivar to devalue to unprecedented levels against the U.S. dollar. According to data provided by the currency tracking website DolarToday, the Venezuelan Bolivar fell this week to an all-time low against the U.S. dollar in the black market.
Pope Francis has sent a “personal letter” to Venezuelan President Nicolás Maduro in which he addresses his concern over the “seriousness” of “the county’s situation”, revealed papal spokesman Federico Lombardi confirmed to journalists this weekend.
Bank of America predicted president Nicolas Maduro would merge Venezuela’s three-tier currency controls into two, replacing the strongest rate of 6.3 bolivars to the dollar with a level of 35. Greenbacks go for around 865 bolivars on the black market.
Venezuela's vice president for economic policy announced Tuesday that the government will inaugurate this week a three-tiered exchange-rate regime which includes a “totally free” market open to both individuals and companies.
Venezuela will almost certainly default on its foreign debt, according to Harvard economists Carmen Reinhart and Kenneth Rogoff. They add that the beleaguered Latin American economy has already defaulted on every conceivable kind of domestic debt.
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.
Venezuelan opposition candidate Henrique Capriles claimed that acting president Nicolas Maduro with his latest decision approving a new devaluation of the local currency Bolivar is destroying the country, and he is achieving it in the hundred days he has been running the government.
Venezuela devalued its currency for the fifth time in nine years as ailing President Hugo Chavez seeks to narrow a widening fiscal gap and reduce a shortage of dollars in the economy. The new exchange rate falls by 32% to 6.3 Bolivar per dollar starting Feb. 13, Finance Minister Jorge Giordani told reporters in Caracas.