English | دری

Venezuela undertakes currency devaluation

in International Business

Venezuela undertakes currency devaluation

chavez-in-brazilVenezuela undervalued its currency by re-pegging the bolivar to a value of 6.3 per USD from it sprevious official exchange rate of 4.3 bolivars per dollars.

This comes as the country is experiencing a shortage of US dollars.

Bloomberg’s Corina Pons & Nathan Crooks reported on Monday:

The government isn’t considering a devaluation at the moment given its strong balance of payments, the official said. The goal is to improve the supply of dollars while keeping in place existing currency controls, said the official, who spoke on condition of anonymity because no final decision has been made.

Last week the government took its first step to increase the supply of dollars in the economy by channeling more of its oil exports revenue to the central bank. South America’s biggest oil producer is facing shortages of goods ranging from diapers to cars as the lack of dollars crimps imports. In the black market, the bolivar has weakened 53 percent to 18.39 per U.S. dollar in the past year, according to Lechuga Verde, a website that tracks the rate.

 



Related Articles

EU vision for the future revealed

EU unveils its vision for the future of monetary union. This new vision allows European authorities greater powers including the

Nigeria Likely to Lose $6bn From Fraud Oil Deal

Italian company Eni and Anglo-Dutch company Shell are accused of being involved in a corrupt oil deal that could lead

David Cameron urges India to open up to British business

David Cameron has urged the Indian government to cut “regulation and red tape” in a bid to encourage more trade

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.