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GatoGordo

(2,412 posts)
Fri Oct 12, 2018, 03:06 PM Oct 2018

New currency worth half less than 2 months into "fiscal rescue" in Venezuela

On August 20/September 1, Nicolas Maduro and his merry band of morons "revalued" the currency, and pegged it unilaterally to the new "Petro" (non existent crypto-currency worth a barrel of oil, or, $60, according to the Chavistas). They also dropped off 5 zeros from the currency and renamed it the Soberano (Sovereign), which came 10 years after Chavez lopped off 3 zeros and renamed it the Fuerte (Strong). Thus, the Soberano was now 60 to the USD. By decree.

Maduro also "allegedly" got a $5 billion dollar loan from the Chinese in order to prop up the economy while the new "fiscal re-conversion" was implemented. (nobody will confirm in China whether Maduro got so much as a Yuan)

In 1999, when Chavez took office, the Bolivar (non-Fuerte/non-Soberano) was worth 546 to the USD. Today, the Soberano is worth 115.3 to the dollar (down from 100 last Friday) and it looks like the money from China was "pilfered", as there is NO activity in Venezuelan ports (Venezuela has to import food) and it cannot export the sludge it can pump out of the ground because the ran a ship into the dock at Jose.

So yes, what used to cost 18 years ago 546 Bs now costs 11,530,000,000.

https://dolartoday.com/indicadores/

https://en.wikipedia.org/wiki/Venezuelan_bolvar

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