• Cielo Vista

Dollar soars on Venezuela’s new currency exchange

February 19, 2015
1 Comments

CARACAS, Venezuela – The Venezuelan bolivar opened Thursday at 172 to the dollar on the first day of a government sponsored exchange meant to compete with the black market.

The opening rate was 27 times the official rates of 6.3 to the dollar, available only for priority imports like food and medicine.

The leftist government of President Nicolás Maduro earlier this month partially liberalized the country’s system of strict currency controls by allowing banks and brokerage houses to sell dollars at what the market will bear.

The amount of dollars that can be bought on the new exchange is limited, however, and demand for the greenback was undiminished on the black market where the dollar was trading at 190, up from earlier in the week.

Despite having the world’s largest oil reserves, Venezuela is beset by widespread shortages, soaring inflation and an economy in a deepening recession.

The dollar has skyrocketed on the black market in recent months with the plunge in oil prices.

The partial liberalization was aimed at easing a severe hard currency shortage in a country that relies on imports for nearly all its needs.

But in announcing the new system Feb. 10, the government said the new “marginal” market will handle only five to ten percent of dollars exchanged, and dollar sales to individuals will be limited to $300 a day and $10,000 a year.

It said most dollars will still be exchanged through the government at the official 6.3 rate for priority imports or at a secondary rate of 12 for most other industrial imports.

Venezuelans have not been able to freely buy and sell dollars since 2010.

Facebook Comments

You may be interested

Costa Rica opens doors for in vitro fertilization
Costa Rica
60 views
Costa Rica
60 views

Costa Rica opens doors for in vitro fertilization

Carlos Andrés Madrigal - June 25, 2019

It took a historic trial and years of discussions for the Costa Rican government to implement measures to ensure access…

Costa Rica to face Mexico in Gold Cup quarterfinal
La Sele
137 views
La Sele
137 views

Costa Rica to face Mexico in Gold Cup quarterfinal

Alejandro Zúñiga - June 25, 2019

Costa Rica’s surprise defeat to Haiti on Monday slotted the men’s national soccer team into a quarterfinal matchup with Mexico.…

Costa Rica falls to Haiti, finishes second in Group B
La Sele
271 views
La Sele
271 views

Costa Rica falls to Haiti, finishes second in Group B

Alejandro Zúñiga - June 24, 2019

Costa Rica faltered in the second half and fell, 2-1, to Haiti on Monday in the final Group B match…

Do NOT follow this link or you will be banned from the site!