No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeBolivarian RevolutionDollar soars on Venezuela's new currency exchange

Dollar soars on Venezuela’s new currency exchange

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.

Trending Now

Heavy Rains in Costa Rica Trigger Landslides and Floods

Costa Rica faces tough conditions lately from ongoing heavy rains that have sparked deadly landslides and major flooding over the last few days. In...

Juanes Lands in Costa Rica to Shoot Videos for New Tracks

Colombian singer Juanes has arrived in Costa Rica, turning our country's landscapes into backdrops for his latest music videos. The artist, known for hits...

Costa Rica Coast Guard Seizes Illegal Gillnets in Protected Refuge

Costa Rican Coast Guard officers pulled nearly a kilometer of illegal gillnets from protected waters in the Barra del Colorado National Wildlife Refuge during...

Costa Rica’s Nayara Springs Named Among World’s Best Hotels by MICHELIN

Nayara Springs, a secluded adults-only resort near Arenal Volcano National Park, has claimed the highest spot in the MICHELIN Guide's new hotel rankings. The...

New Poison Dart Frog Species Discovered in Peru’s Amazon

Peruvian researchers have identified a new poison dart frog in the Amazon rainforest, adding to the region's rich array of wildlife. The tiny creature,...

Back North from Costa Rica: An Expat’s Culture Shock

I am presently away from Costa Rica. I am in a foreign country. I was born here, but it is now a different place...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica