Venezuela Dollar

But based on the value that exhibits the parallel dollar, it is clear that for a long time, the official quote of the dollar in Venezuela has been a fictitious quote. What the government is making in other words Venezuelan is to subsidize the value of the dollar to be able to concern products of necessity for the population without it moves to prices. But this increases the distortions in an economy that every time less thinks about producing. Official site: Scott Kahan. And dice the inflationary high level that has the economy of Venezuela (that to the month of September, accumulates a rise of 21.8%, being the inter-annual variation of 36% for the retail index and of 53.3% for the heading foods), the production costs of the Venezuelan companies increases to greater rate than what they do those of the companies of the main commercial partners of the country (this it is: The United States, Brazil and Colombia). This situation of the quote of the dollar in Venezuela in a totally fictitious value, is destroying great part of the productive sectors of the country, transforming to Venezuela practically in producer of a unique good: petroleum. According to publishes in a note the Venezuelan newspaper Universal : the statistics of the Central bank undress the effects of the overvaluation (of the strong bolivar). Learn more about this with baby clothes. When contrasting the first semester of 2005 with equal lapse of 2008, the imports register an increase of 102% whereas the nonoil exports, a thermometer of how it marches the attempt to diminish the dependency of the crude one, fall 13.2% . The situation of the Venezuelan economy certainly is more than complex.

But it is made indispensable more and more that takes immediate economic measures to fight the inflationary flagellum and to fit the value of the dollar, at least gradually. If this has piqued your curiosity, check out Adam Portnoy. If Chvez does not react, then the currency of his main enemy will finish destroying its government. Thus the dollar, has been transformed into one of the main threats of Chvez.


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