One dollar now buys 103,000 bolivars in Venezuela’s black market
Venezuela’s currency is in free fall as hyperinflation intensifies and a recently unveiled plan to restructure foreign debt adds to a sense of chaos in Caracas.
The rate in the black market — the place where most Venezuelans acquire dollars in the authoritarian country — weakened to 103,000 bolivars per greenback Friday, according to dolartoday.com, a website that tracks the data. That’s a 20% drop just this week and compared with a rate as low as 10,000 per dollar as recently as late July. The official government-set exchange rate — which is virtually inaccessible — is 10 bolivars per dollar.
President Nicolas Maduro has increased government spending — and financed it by cranking up the central bank printing presses — to curry favor in the run-up to this year’s vote on whether to install a constituent assembly and further tighten his grip on power. He’ll face a presidential election next year as the populace suffers from an economy forecast to shrink 12% and inflation estimated to be running at an annualized rate of more than 4,500% over the past three months.
Crux note: We wonder if this will one day be America’s fate… Stay tuned.