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November 28, 2018 23:03
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Last updated on November 28, 2018 at 23:17
Ten days after President Nicolás Maduro announced the increase in salary to 1,800 sovereign bolivars, that is to say on August 29 of this year, the auction of the dollar complementary floating market exchange rate system to 60.89 bolivars, and the price of the euro, which is now the reference for all government operations, was 71.16 bolivars.
The monthly minimum wage was equivalent to 29.87 dollars (or 25.29 euros) if the Dicom rate was taken into account.
This Wednesday, exactly three months later, the Central Bank of Venezuela released the new Dicom auction results indicating a devaluation of the bolivar against international currencies, placing the dollar at 85.87 bolivars and the US dollar. euro to BsS 96 84
The change in the exchange rate was 41.02% and the bolivar's depreciation against the dollar was 29.09%, that is to say that Maduro's salary had fallen by almost 30% relative to the dollar. with the timing of the announcement of the economic stimulus package.
The depreciation, taking into account the euro, is 25.89%.
For practical reasons, it could be said that Venezuelans receive a minimum wage of $ 30 per month in September, using the Dicom rate as a reference, and that at the end of November this wage has fallen to $ 20.
The devaluation becomes even more important if the price of currencies on the parallel market is taken into account.
The problem of wages in Venezuela
Miguel Velarde, an economist, explained to The national web wages in Venezuela have two aspects on which they must be analyzed: hyperinflation and loss of purchasing power.
"Everything is increasing rapidly and the purchasing power of wages is decreasing, that is to say that the real value of the sovereign bolivars received by Venezuelan workers is decreasing," he said.
For the economist, however, the problem far exceeds the quote from the official rates. Difficult access to official currencies forces businessmen to look for alternatives to maintain imports and supply the country.
"For a long time, there are products whose price depends on an unofficial exchange rate.Many more when we talk about products that are not manufactured here.To import dollars, you need, and to access these dollars, you have to look for alternatives, because the Dicom has a limit, "he said.
Velarde explained that the purchasing power is therefore lower in percentage because the rate has increased during the last three months.
"If it is assumed that the wage is governed by this type of change, it has been devalued.And the truth is that it is still much more with regard to the parallel exchange rate.The products to which the Venezuelans must have access are not governed by the official rate. "
| # Warning| This is the rate resulting from trades made this Wednesday, November 28, 2018 in the Exchange Market System. #BCV # 28Nov pic.twitter.com/Ql1GEiWVY4
– Central Bank of Venezuela (@BCV_ORG_VE) November 28, 2018
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