Venezuelan economy It was in recession for Eight years, suffered four years of Hyperinflation and currency depreciation in free fall.
But the beleaguered bolivar has, against All odds, I’ve been able to settle down since October.
It is thanks to an investment of $2.2 billion by the state in try to slow down down economic inflation in South American nation.
the last year I finish with Inflation at 686% – highest in The world. But this was important improvement on 130,000% in 2018, 9,585% in 2019 and 3,000% in 2020.
According to consulting Aristimuno Herrera & Associates, Venezuela Center bank Injecting $2.2 billion into the country market in 2021-2022.
forbidden for 15 years ago governmentUnited State dollar It was once rare and highly valuable, exchange of hands on The black market for Significantly more Manal official exchange rate.
suffering cash squirting crisis, and government Had to lift the ban in 2019.
“Can you continue?”
“Show more dollars from there demand begets stability in exchange rateCesar Aristogno, director In Aristimuno Herrera & Associates, AFP.
The bank It has approved 29 “interventions” since October 2021, although no details were given of amounts.
Last October, a bank sectioned six Zeros off Bolivar – Made one new Bolivar worth million years old – with The government Saying this would improve faith in local currency.
At the same time, the authorities imposed a 3% tax. on Foreign exchange and cryptocurrency transactions.
“Legal tender is and will remain Bolivar,” Vice President Delcy Rodriguez, who He is also The economy and finance ministerTell parliament.
Since October, exchange rate against The dollar It moved from 4.18 to 4.32 bolivars, which is depreciation of just 3.24%.
This compares favorably to consumption of 76% in 2021 and more from 95% in All of the past three years.
After shrinking by more 80% in eight years of Recession, Venezuela’s GDP grew by 4% in 2021, government claims.
“for us economy Is also small This is like policy can be applied. The issue He is how Henkel Garcia said, director In Economica.
Some experts fear that government It burns” international But Aristogno and Garcia say the dollars came from the increase in Venezuelan oil revenues due to rising Crude oil prices and a limited increase in Produce.
The state oil company PDVSA produced more More than 3 million barrels per day in 2014 but that’s down to 400,000 six After years.
It has now risen to 680,000 according to OPEC of Petroleum exporting countries.
Center bank says It has 10.8 billion dollars in Reserves, half The amount of 2014 and third of No. 2007.
However, the bank Including $5 billion provided by the International Monetary Fund (IMF) to help Mitigating the effects of Coronavirus pandemic, but withheld due to questions over Re-election 2018 of President Nicolas Maduro in The survey was widely dismissed as a scam.
‘side effects’
during injection of The dollars have beneficial effects, Aristimono said, and there are “collateral damages.”
Because inflation is high and exchange rate unstable dollarpurchase power He falls. Likewise, “exports lose their attractiveness” as compared to imports.
Carlos Fernandez Gallardo, President of FEDICAMARAS’ employers’ union said it was concerned.
“There is an increase in dollar Costs for Producers with malignant effect on “What would happen if these dollars disappeared?” he told AFP.
in 2018, government Attempting to tackle inflation by requiring banks to hold at 85%. of their reserves in Center bank in Try to reduce printing of money.
who serves reduce credit that was already in free fall with Declining bolivar.
Venezuela is credit obesity with Less than 140 million dollars in 2021 for $14 billion in neighboring Colombia.
Realize that credit, investments and growth Closely related, partly Caracas changed tech in February, allow loans to be indexed against The dollar Under certain conditions, the required reserves were reduced to 73%.
but the challenge remains how I’m classy growth while keeping inflation under control.
