[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."
| China already contracted for the oil Venezuela can't get out of the ground, at undevaluated prices. They are not going to be pleased. |
However,
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. |