Venezuela devalues ​​its currency by almost 35%

Venezuela devalued its currency Monday at 34.83%, which is equivalent to the official rate of the dollar at the black market rate, qualified as "criminal" by the government of Nicolás Maduro.

Following a new exchange mechanism launched on Monday, the quotation was set at 3,200 bolivars per dollar compared to 3.188.62 on the website dolartoday.com, the main reference of the parallel market.

The program includes a technology platform operated by the private company Interbanex, with the authorization of the Central Bank of Venezuela (BCV), intermediate private entities and operators such as banks.

"The exchange rate (…) will be what will define the supply and demand," said Interbanex, in a country subject to strict foreign exchange controls since 2003, granting the state a monopoly on foreign currencies.

The experts urge Maduro to eliminate this policy of intervention to deal with the severe economic crisis, characterized by a shortage of staple foods and medicines and an inflation that the IMF predicts to 10 000 000% by 2019.

The measure comes amid a growing political crisis, after last Wednesday the leader of the opposition majority, Juan Guaidó, was sworn in as interim president.

Maduro has described this maneuver as a "coup d'état" led by the United States, which has recognized Guaidó as a responsible agent, as well as several countries in Latin America. Protests and riots unleashed last week killed 35 people.

Asdrúbal Oliveros, director of the consulting firm Ecobadítica, said recognition of the value of the dollar "came too late" and that she doubted the viability of the new regime in the face of political tensions.

"The problem is not the platform, which could be the best in the world (…), the country is in a dynamic where it is not viable, and it will get worse," he said. warned Oliveros.

In addition to giving its blessing to a parallel government, Washington has threatened to toughen up the sanctions against the Maduro government.

The official rate last Friday was 2,084.39 bolivars per dollar, resulting from an auction system coordinated by BCV. It has not been clarified whether the new platform will replace these offers or whether the two modalities will coexist.

Given the limited supply of foreign exchange through official channels, a parallel market emerged from the dollar, in which contributions were multiplied by 30 at government rates.

Senior and senior officials have described it as "criminal", baduring that the value of foreign currencies had been inflated artificially to sink the Venezuelan economy.

The owner of one of the portals that cited the "black dollar" was arrested last April – accused of "financial terrorism" by the prosecutor's office – and thousands of bank accounts were blocked by operations escaping the exchange control.

Since last August, when Maduro launched a reform package against the crisis, the bolivar devalued 98.12%. The plan had already begun with a 96% devaluation.

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