Venezuela: more of the same

Instead of clarity, still more confusion out of Venezuela on Tuesday as officials made yet another announcement on a long-awaited reform of the country’s dysfunctional foreign exchange system. The government said dollars to cover 70 per cent “of the economy’s needs” would be supplied at the official rate of 6.3 bolívares, with the remaining 30 per cent offered at a variable rate starting at 12 bolívares to the dollar. That still left room for a third channel, to be known as Simadi, supposedly left to float freely according to supply and demand. “This third mechanism is open, free, in which bidders and buyers exchange offers,” finance minister Rodolfo Marco Torres said at a press conference. More…