Venezuela devalues its currency again

In Venezuela, the spokesman of the press conference, the President of the State company Petroleos de Venezuela and the Vice President of the economic area, Rafael Ramírez, announced a devaluation of the local currency, the Bolivar.

Supporters of the Government of Nicolás Maduro made use of ambiguous terms to confuse the citizenship clearly dissatisfied with this measure. Ramirez, instead of “devaluation” preferred to use: a new exchange model, dual rate or “rate Sicad”(referring to the new price of the currency to settle non-priority imports for the Government).

From now on, people who buy plane tickets to travel outside the country, using their credit card abroad or bring nonessential goods according to the criterion of the Executive, they must pay almost double the consumption in foreign currency into local currency. I.e.: a dollar will be 11.36 bolivars and not 6.30 bolivars. The currency has devalued at 80.32%. All these announcements will surely have an impact on inflation.

In 2013, Venezuela had the world record with 56.1%. This is the sixth correction to the exchange rate made by the chavismo in eleven years of exchange control.