On the "margin," we devalued today

What is a dollar worth? Depends on who you know

Venezuela today has four different prices for the dollar – three of them official, one of them not. For basic imports (chavista code for “available only to Godgiven and his cronies”) a dollar costs BsF 6.3. For not-so-basic imports and for traveling (chavista code for “let’s throw a bone to the middle classes so they won’t…

Merentes on the tambora

An announcement about nothing

The Expectation-Disappointment cycle around Venezuela exchange-mechanism announcements is so well established by now, we barely get our hopes up any more. Today was no different. There was little about today’s press conference that the public didn’t already know or that wasn’t already so. Much like that well-loved sitcom, today’s event with Rodolfo Marco Torres and Nelson…

Allegory of what happened to Ford's Venezuela profits.

The Sound of 1.1 Trillion Pennies Dropping

People are starting to put 2 and 2 together. This Reuters report finds that 40 major U.S. companies have big-time exposure to the Venezuelan shitshow, in the form of at least $11 billion dollars worth of paper profits in bolivars that are going to vanish in a puff of logic the second the Bs.6.30:$1 fiction –…

Dolares-y-bolivares

Maduro’s stealth devaluation

It’s easy to be dispirited by Maduro’s address last night. The three-hour rant was only occasionally peppered with substantive announcements, and none of them were clear enough to really know where the government is headed. But even if we take the most optimistic of views about the substance of what he said – and this note…

logo_lvbp

Money for baseball (and trips for free)

Before the baseball season began back in October, the Venezuelan Professional Baseball League (LVBP) publicly thanked government currency distributor CENCOEX for handling their requests right on schedule. But now it looks like the relationship between the state and the LVBP has reached an unprecedented level of intimacy. According to El Universal’s political correspondent Pedro Pablo Peñaloza, the central…

Pdvsa-La-Campina-g

Venezuela’s encripted devaluation

An obscure document was published yesterday by Venezuela’s Central Bank (BCV), allowing PDVSA to sell the dollars it makes via oil exports to the BCV for deposit into an undeclared, secret fund at a more comfortable rate. Up until now, the rate that PDVSA got for its hard-earned dollars was the cheapest of the four…