Bellum Bodegonicum: The Bubble Pops
Tony paints the whole picture of the strain the very fragile “Venezuela se arregló” system is going through right now. We could even say the bubble has finally popped
El Feed
Economic Déjà Vu
Venezuelans brace for another year of dwindling purchasing power. The black market exchange rate has once again hit 100 Bs per USD.
Same old, same old
Everyone remembers 2017 and 2018 as the darkest days of Venezuela’s economic collapse. But after Maduro & Co. killed the local currency, the regime softened the enforcement of exchange controls and allowed the dollar to flow more freely.
The last monetary reconversion took place in late 2021, when the official exchange rate stood at 4.39 digital bolivars per dollar, with the black market rate slightly higher at 4.47.
The parallel rate has now soared past 100 digital bolivars per USD—the fourth time in history this has happened. The official rate lags behind at 68.69 bolivars per dollar. That gap now stands above 30%.
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SAN FRANCISCO, VENEZUELA, 23-08-2022. AUMENTO DEL DOLAR EN COMERCIOS DE SAN FRANCISCO.
Mind the Gap
The difference between the official and parallel exchange rates for dollars and bolivars are increasing again. Why is this happening? How will it impact Venezuela?
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