Bolivar Plunges in Black Market as Venezuelans Stash Dollars

Venezuela’s largest bill of 100 bolivars is now worth less than a U.S. quarter to money-changers after a plunge in the currency’s black-market value. The bolivar fell 25 percent on the black market last week to 423 per dollar before strengthening to 413 today, according to dolartoday.com, a website that tracks the rate on the Colombian border. That’s 66 times the primary official rate of 6.3 bolivars per dollar, and means the 100-bolivar bill fetches about 24 U.S. cents from illegal street dealers. Venezuela has maintained strict currency controls since 2003, pushing people and businesses to the black market when they can’t obtain government approval to purchase dollars at the legal rates. The country has the fastest inflation in the world; with hard goods such as autos and real estate in short supply, people want dollars to protect their savings. More…