Dolarization – Summaries of news and views OnVenezuela https://onvenezuela.com Fri, 10 Dec 2021 15:14:28 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://onvenezuela.com/wp-content/uploads/2020/01/cropped-Screen-Shot-2019-12-20-at-12.31.03-PM-1-32x32.png Dolarization – Summaries of news and views OnVenezuela https://onvenezuela.com 32 32 Is Venezuela Really Leaving Hyperinflation Behind? https://onvenezuela.com/is-venezuela-really-leaving-hyperinflation-behind/?utm_source=rss&utm_medium=rss&utm_campaign=is-venezuela-really-leaving-hyperinflation-behind Fri, 10 Dec 2021 15:14:19 +0000 https://onvenezuela.com/?p=12620

During UCAB’s Perspectives 2022 forum economist Luis Bárcenas said that the inflation dynamics are changing in the country. He thinks that hyperinflation will be over by early 2022, because of the availability of foreign currency, cutting down on public spending and restrictions on banking credit. He said citizens distrusting their currency is the beginning of hyperinflation but that hasn’t changed, but they foresee monthly inflation rates lower than 10% and a “7% expansion of economic activity,” which, compared to an 80% contraction is an improvement, even though it’s still insufficient. Bárcenas revealed the regime has a 2,300 million dollar deficit and obtains its main income from the black market economy and exporting non-conventional products like scrap metal or wood. In addition, Venezuela receives around 8,000 million dollars for drug trafficking, gold and extortion. . By Naky Soto. Full Text->CaracasChronicles

Traducción de cortesía -> Durante el foro Perspectivas 2022 de la UCAB, el economista Luis Bárcenas dijo que la dinámica de la inflación está cambiando en el país. Piensa que la hiperinflación terminará a principios de 2022, debido a la disponibilidad de divisas, la reducción del gasto público y las restricciones al crédito bancario. Dijo que la desconfianza de los ciudadanos en su moneda es el comienzo de la hiperinflación, pero eso no ha cambiado y que se prevén tasas de inflación mensual inferiores al 10% así como una “expansión del 7% de la actividad económica”, lo que, frente a una contracción del 80%, es una mejora, aunque todavía es insuficiente. Bárcenas reveló que el régimen tiene un déficit de 2.300 millones de dólares y que obtiene sus principales ingresos de la economía de mercado negro y de la exportación de productos no convencionales como chatarra o madera. Además, Venezuela recibe alrededor de 8.000 millones de dólares por tráfico de drogas, oro y extorsión.

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Venezuelans in mining town loot stores that refuse to accept cash https://onvenezuela.com/venezuelans-in-mining-town-loot-stores-that-refuse-to-accept-cash/?utm_source=rss&utm_medium=rss&utm_campaign=venezuelans-in-mining-town-loot-stores-that-refuse-to-accept-cash Tue, 25 May 2021 15:27:04 +0000 https://onvenezuela.com/?p=9377

 At least 10 stores in a southern Venezuelan mining town were looted on Monday after they refused to accept low-denomination banknotes, locals said, a sign of how hyperinflation is roiling commerce in the South American country. The stores in Guasipati had all turned down bills worth 50,000 bolivars, worth less than 2 U.S. cents. Merchants prefer receiving larger bills – the central bank in March said it was issuing a 1 million bolivar note – to avoid handling large handfuls of cash. By by Maria Ramirez, Luc Cohen. Full Text -> EuroNews

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In Venezuela Bond Market, Gunmen and Bags of Cash Are Required https://onvenezuela.com/in-venezuela-bond-market-gunmen-and-bags-of-cash-are-required/?utm_source=rss&utm_medium=rss&utm_campaign=in-venezuela-bond-market-gunmen-and-bags-of-cash-are-required Wed, 14 Apr 2021 13:23:08 +0000 https://onvenezuela.com/?p=8673

When Ron Santa Teresa issued its bonds, buyers assumed that a dollar-clearing system would be in place by the time they matured, so they could collect the proceeds electronically. Building that infrastructure before the bond matures now seems increasingly unlikely. So once again investors with a certain level of derring-do will be on the streets of Caracas, furtively transporting thousands of dollars of banknotes through a city suffused with criminal gangs and frequently ranked as having among the world’s highest murder rates. But at least they’ll earn some interest.By Nicolle Yapur. Full Text-> BloombergQuint

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I See Your Million, and Raise You a Beco Bond https://onvenezuela.com/i-see-your-million-and-raise-you-a-beco-bond/?utm_source=rss&utm_medium=rss&utm_campaign=i-see-your-million-and-raise-you-a-beco-bond Wed, 10 Mar 2021 14:04:27 +0000 https://onvenezuela.com/?p=8066

While chavismo insists on looking for solutions to the cash shortage that in the short run worsen the economic crisis, the private sector gets smart. By Raul Stolk. Full Text -> CaracasChronicles

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