Venezuela: Devaluation “Imminent”

A devaluation in Venezuela is imminent, saysPedro A. Palma, director at Ecoanalítica and founding partner at MetroEconomica. “Declining oil production combined with high demand for almost-free gasoline and high export subsidies for politically allied countries have limited the inflow of foreign exchange,” he told the Inter-American Dialogue’s daily Latin America Advisor. “This scenario combined with a high demand for dollars due to a significantly overvalued official exchange rate and a black market rate tenfold higher makes devaluation inevitable and imminent.”. More...