Venezuela Running ‘On Fumes’ As Bolivar Weakens

Even though Venezuela tapped the International Monetary Fund in recent weeks to keep itself afloat, shoring up its currency is another matter. The low price of oil has crushed the energy exporter’s budget. Russ Dallen, who contributes to a newsletter for investors, and writes about Latin America, writes today that “Venezuela’s situation continues to unravel at increasing speed as the bolivar tumbled 30% over just the last week, while the country’s international reserves simultaneously hit a new 12-year low, closing at $17.5 billion.” He says the weak currency and decline in reserves means the country is “essentially running on fumes. More…