well_bolivar

A Caracas City Shuffle

Venezuela’s government is about to unleash the biggest economic reform set forth in the last 11 years. A currency market is about to be set in place, with far fewer restrictions than the previous systems. This reform is a step back from the toxic policy of exchange control, and it is exactly 11 years late. The…

Spoiled greens

SICAD has just been rolled out as a panacea for foreign currency scarcity in Venezuela. But if descriptions of the bureaucratic mess involved in obtaining dollars at auction are any indication, chances are SICAD won’t even begin to cover demand. Which is a crying shame because the alternative – the very illegal black market – is…

SICAD: Birth of a Red Tape Behemoth

There was huge confusion yesterday following the launch of SICAD (the newfangled “Sistema Complementario de Administración de Divisas”), meant to supply additional dollars to importers shut out of the main currency control mechanism, CADIVI. SICAD will replace the previous, impossibly dysfunctional alternative-to-CADIVI, known as SITME, which died peacefully in its sleep last month. SICAD looks likely to prove…