Venezuela’s sort-of devaluation stokes uncertainty by Andres Schipani

The New Year has come but the same uncertainty as last year is still looming over Venezuela. Particularly, the genuine currency devaluation that many economists agree could correct the country’s deep economic distortions and narrow the budget gap is, so far, nowhere to be seen.

To be sure, following an announcement in mid-December, a devaluation of sorts did come into effect a couple of days before Christmas, when the central bank announced a 44 per cent adjustment for foreign tourists and for investments in the oil industry. In these cases, bolívars can be bought at a rate of 11.3 to the dollar, rather than the official rate of 6.3. more...