Venezuela, the Country With Four Exchange Rates

Venezuela can simultaneously be the world’s cheapest and most expensive country because of its multiple exchange rate systems. A dinner at an upscale restaurant, including drinks, can cost as little as $6 per person or as much as $160, depending on how you do the math. Figuring out the tip isn’t any easier. The creation of a new alternative exchange rate this month, which led to a 70 percent devaluation, has left foreign companies operating in Venezuela with a dilemma. Do they try to pull their money out at the new weaker exchange rate or hold on, waiting for the stronger rate they were promised by the government. More…