So Venezuela has devalued the recently devalued Bolivar yet again. Is there a reasonable explanation? Probably not, but there seems to be even less reason now than before el Presidente
THugo died to look to reason to explain what happens in Venezuela .
a second devaluation with a value of the currency above Bs. 10, essentially implying an almost doubling of the previous official exchange rate, simply makes no sense three weeks before the election.
Will it hurt Maduro’s chances of election and help Capriles? Capriles seemed already to have been having a pretty good week.
El Mundo and financial sources are reporting that in the first SICAD auction, the average price at which the Government will sell foreign currency is over Bs. 10. Different sources say different numbers, but in the end they all say it is above Bs. 10. (EL Mundo says Bs. 12 to Bs. 15, I heave heard the average was Bs. 11)
I find this whole thing really puzzling. If I never understood why the Government wanted to make an issue of this, I now don’t understand why they rushed the whole thing to the point of holding the first auction today and announcing the results tomorrow. Chavismo has never been dumb about when to do things, so what is the rush?
I mean, when I left Caracas on Friday banks did not know how the whole thing would work and by Monday they had sufficient offers to hold the first…
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