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| Caribbean-Latin America | |
| Venezuela prepares to devalue local currency in 2011 | |
| 2010-12-17 | |
[El Universal] In January 2010, Venezuela's President Hugo Chavez announced devaluation of the official exchange rate in order to "strengthen Venezuelan economy, curb imports that are not strictly necessary and also, at the same time, stimulate the export policy."
The infamous However... eleven months later, non-oil exports remain down, dependence on imported products has increased and investment banks and economic research firms take for granted a new devaluation of the bolivar in early 2011. In a report dated December 14, British investment firm Barclays Capital anticipated devaluation. Based on its estimates, current foreign exchange of VEB 2.6 per US dollar will go to VEB 3 per USD; the exchange rate of VEB 4.3 will heighten to VEB 5. Foreign currency bought through the Transaction System for Foreign Currency Denominated Securities (Sitme) operated by the Central Bank will also be adjusted from VEB 5.3 to VEB 6.5 per US dollar. After taking into account the price of the US dollar in each sector of the economy, Barclays determined that the average exchange rate will amount to VEB 5.15 per US dollar, which would result in 22.6 percent devaluation. At the same time, economic research firms EcoanalÃtica and Econométrica also noted in their latest reports that the implementation of a new exchange rate regime is imminent. | |
| Posted by:Fred |
| #5 Bah. We've already started 'quantitative easing' this year under the Donks. |
| Posted by: P2kontheroad 2010-12-17 19:06 |
| #4 Hoogo's puppets in Venezuelan Assembly just gave him dictatorial decree power for 18 months, even longer than the 12 he asked for. Goodbye Venezuela |
| Posted by: Frank G 2010-12-17 18:25 |
| #3 The REAL Bolivar rates are here As of today: 8.662 |
| Posted by: European Conservative 2010-12-17 17:08 |
| #2 Bloomberg News reports: Chavez Seizures Crimp Housing Campaign as Output Sags basically his seized/nationalized steel and cement industries can't produce enough to build the needed housing. Off 50% from last year. Whatta surprise? |
| Posted by: Frank G 2010-12-17 15:30 |
| #1 China already contracted for the oil Venezuela can't get out of the ground, at undevaluated prices. They are not going to be pleased. China doesn't sign contracts for the delivery of oil from Venezuela. They sign contracts for the ownership of oilfields, and they bring in outside labor from China to extract it. Very little of what they spend in Venezuela actually gets into the local economy; their drill sites are reportedly rather self-sufficient or supplied from outside. Only the government benefits. And when the ME blows up, they'll have a lot of those fields locked up under contract. _We're_ the ones stuck with what Venezuela can produce on its own, because American companies don't have rights down there. We can invest, but when push comes to shove our ownership in what we paid for vanishes. |
| Posted by: Thing From Snowy Mountain 2010-12-17 10:40 |