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The International Monetary Fund predicts that Venezuela will close 2018 with inflation of one million percent, the media DW conducted an interview with the l '; Venezuelan economist Pablo Rafael González on how to suffer, and how to get out of the crisis that Venezuela is currently going through
The full interview follows:
Hyperinflation is the ultimate manifestation of bankruptcy in the country. a state. What in Venezuela could be purchased with a bolivar on January 1, 2018, December 31 would cost a million. What is the data of the July 24 devaluation in Venezuela?
Pablo Rafael González: Since January 2018, the devaluation of the currency has increased from 100,000 bolivars to the dollar, on the parallel market, to 3 and a half million bolivars
What is the main reason for the change? hyperinflation?
Exchange control, imposed by the Venezuelan government, which forces all prices to be quoted on the basis of this monetary reality, has led us to the debacle we are experiencing.
In June 2018, the government authorized the operations of three private foreign exchange houses that have since bought but do not sell convertible currencies, and where one dollar is paid in 2 million 500,000 bolivars, 17 times more than the official Dicom and closer to the price on the illegal parallel market.
Venezuelan hyperinflation is already compared to that of Germany in 1923, due to the costs of the First World War. How did the Chavez governments spend the Venezuelan heritage?
Change control continues to be the source of the problem. This generates inflation, and the currency depreciates faster and faster, without considering abolishing exchange control, because for the government it is something immutable.
How is hyperinflation experienced? in Venezuela?
The monthly minimum wage in Venezuela is 5 million and a half bolivars. That equals $ 1 with 50 cents. A kilo of meat is worth 10 million bolivars, or nearly 3 dollars. The minimum price of a bread in Isla Margarita, for example, is one million four hundred thousand bolivars. Prices in Venezuela go beyond the logic of world statistics
In all respects, more than half of the workers in the Caribbean, who earn the minimum wage, are unable to meet their most basic needs.
Let's go back to the causes of hyperinflation, which you are talking about. Why do you think Nicolás Maduro's government should regulate change?
The government says that exchange control seeks to prevent the escape of foreign currency, but has been the opposite. The currencies have disappeared and the city has become impoverished.
Source: DW
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