Maduro devalued the currency and raised the price of gasoline for the exit of Venezuela from the crisis

Venezuelan President Nicolas Maduro abruptly dropped the exchange rate of the country and raised the price of gasoline, which for 10 years has remained the lowest in the world. About changing economic policy, the President said in a four-hour speech on TV, accompanying innovations curses against the opposition and periodic abuse, reports Reuters.

The official rate of the Bolivar is the currency of Venezuela is downgraded from 6.3 to 10 bolivars per dollar, and the price of gasoline increased by 1300%. While Reuters says that even after that to fill the tank will cost half a can of soda: if you convert at the black market rate, you get about 23 cents. According to some estimates, the annual volume of state subsidies for fuel exceeded $ 12 billion.

Covered most severe economic crisis in Venezuela, as Maduro has acknowledged, needs a package of measures to stabilize the situation. According to the President, this plan also addresses the area of employment, tax policy and the «receiving, collection, investment and distribution of currencies in the country», reports TASS.

«It’s time to install a system that would guarantee access to the products of processing of hydrocarbons for the Venezuelan fair price, which could compensate for the funds that are invested in the production of gasoline, including normal operation (oil company) PDVSA,» said Maduro. In the food sector, the authorities will also move to the «new pricing system», but will seek a «fair price» for the population.

The first reaction of financial analysts positive but cautious. Most agree that the measures taken are categorically insufficient during the crisis, which regularly leads to shortage of products in stores. According to Reuters, critics believe necessary complete abandonment of a fixed rate system introduced during the reign of Hugo Chavez.

The economic situation in Venezuela has become critical amid shortages, galloping inflation and falling government revenues due to a decline in oil prices, as well as the institutional crisis between the Executive and legislative branches of government after the start of the opposition of Parliament.

Maduro devalued the currency and raised the price of gasoline for the exit of Venezuela from the crisis 18.02.2016

Февраль 18th, 2016 by
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