Did Vice President Ramirez fail to seek necessary guidance from Chavez’ ghost, or did a little bird, chirping on behalf of el Thugo, tell him what to do?
After promisiing that it would not devalue, the Venezuelan Government not only implemented a devaluation equivalent to a 22.2% devaluation, but also established a fairly restrictive foreign currency budget, doubling Sicad auctions to US$ 220 million per week and reducing the travel and remittance quotas that individuals had access to. While promising to honor debt obligation in the form of bonds issued by Pdvsa and the Republic, the Government simply said it had no foreign currency to pay the US$ 8.4 billion debt between CADIVI and the private sector from imports made in 2013, which if true will have a drastic impact on local companies.
The announcements were made by the Vice President for Economic Affairs Rafael Ramirez, who said that there will be a budget for foreign currency of US$ 42.7 billion in 2014 (Imports in 2012 were US$ 75 billion and 2013 should be above US$ 65 billion)…
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