Thursday, October 19, 2017

The Foreign-Exchange Crisis Plaguing Venezuela


Venezuela’s political crisis is a deeply complex issue affecting nearly every aspect of everyday life. The country’s foreign-exchange reserves and trading have been quietly at the forefront of these issues for some time now, as reserves dwindle and the value of the Venezuelan bolívar falls. 2017 has seen a flurry of activity in the country’s foreign-exchange arena as both public and private developments drag down the embattled country’s currency. In an effort to curb the free-falling currency, Venezuelan President Nicolás Maduro and the country’s central bank introduced a new exchange rate through its DICOM currency auction system. The new exchange rate saw the value of the bolívar drop from 728 per one US dollar to 2,010 per one US dollar. More…

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