More from The Devil’s Excrement on the Venezuelan Bolivar
Fuertedevaluation. It seems that the U.S. dollars that were auctioned off for Bolivars went for Bs. 12.5 and Bs. 18 per US$. That’s a pretty big range, but perhaps they think big in Venezuela. Good change? Bad change? It may even be for the better; it would be difficult for most anything to be for the worse, as the late lamented el Presidente himself demonstrated over the years.
I have been pondering about the new foreign exchange auction system SICAD since it was first discussed. Besides all of its weirdness, what I have had the toughest time dealing with is very simple:
Why the rush? Why the second price for the US dollar even if it is a State secret? Why before the election? Why take the risk? Why devote so much time to it?
It can’t be to get more Bolivars. It can’t be to lower the black rate. It can’t be to reduce shortages.
And now that one auction has taken place and Bolivars reportedly assigned to a range between Bs. 12.5 and Bs. 18 per US$, I am left with only one theory:
Someone sat down with Maduro and explained to him that what Giordani wanted was a sure path to self destruction and convinced Maduro to change the whole system and manage the…
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