Allocation of US dollar for overseas travel has declined 75 percent

[naaman fletcher]

Data issued by the Foreign Exchange Administration Commission (Cadivi), which is the agency responsible for allocating foreign currency at the official exchange rate, show that in the first half of 2010, the government authorized the payment of USD 449.1 million for overseas travel. This represents a sharp decline of 75 percent compared to USD 1.81 billion approved in the same period in 2009.

The cut in the allocation of US dollars at the official exchange rate for overseas travel is due to several factors.

First of all, Cadivi has restricted people's freedom to spend the USD 3,000 quota per year and authorizes a certain amount of dollars depending on the destination and the duration of the travel.

At the same time, the devaluation increased the cost from VEB 2.15 per US dollar to VEB 4.30 per US dollar and the inflation rate has eroded household's budget, forcing people to cut non-priority spending.

http://english.eluniversal.com/2010/07/21/en_eco_art_allocation-of-us-dol_21A4220731.shtml

If you ran Venezuela and wanted to keep people from fleeing, one thing that you could do is to close down the black market in dollars and then not exchange dollars for foreign travel. Just sayin.

[Wilms]

1. By 'people' do you mean from the ranks of the oligarchs who have looted the country?

:shrug:

[naaman fletcher]

2. That, and young professionals who are trying to get out. nt

[Wilms]

3. By "young professionals", you must mean Yuppies. Right?

And how much money have they, in their new careers, already looted that these laws present some kind of problem?

Sounds like Hugo wants the poor to eat dinner before he's gonna worry about a third piece of pie for someone else.

[naaman fletcher]

4. I'm not sure exactly...

But I know that if people want to leave they should be allowed to leave.

[Wilms]

5. Are they not? n/t

[naaman fletcher]

6. I am not saying they are not..

I speculated, and admitted it was speculation, that the currency controls would be a way to keep people from leaving. I totally acknowledge it is a brainstorm and not an accusation.

[Wilms]

7. I think the currency control are meant to prevent the money from leaving.

I can understand that position given the circumstance.

[dipsydoodle]

8. The UK had exchange controls through to 1979

We were also not allowed to buy or sell gold other than in the form of jewellery. Back in the sixties any of the limited amount of money we changed to go abroad was recorded in our passports.