The differential between the official rate and the parallel dollar widens every day. This Friday the exchange rate established by the BCV stood at Bs 6.18. That is, 12.4% less than the parallel
The parallel exchange rate continues to rise after months of relative stability and closed the week at Bs 6.95 per US currency, according to the latest update of the Venezuela Dollar Monitor account, the country’s main benchmark in terms of the parallel dollar.
?️ 08/19/2022
? 1:05 PM
? Bs 6.95
? 1.37% Bs 0.09 pic.twitter.com/EKkVedhru0– Dollar Monitor Vzla (@monitordolarvla) August 19, 2022
In this way, it is confirmed that the currency increased its price by 12.4% during the course of the week, since on Monday, August 15, it marked an initial price of Bs 6.18.
The monthly variation is even more pronounced. At closing time on July 19, a month ago, the currency was trading at Bs 5.85. This means that in just one month there was an increase of 18.94%.
The price change denotes an acceleration in the devaluation of the bolivar against the dollar, but it does not surprise any economist, since they warned that this increase would occur sooner rather than later, since the Government could not maintain its policy of intervention in the foreign exchange market.
Chavismo’s strategy to try to contain the variation in the exchange rate and give the idea that inflation was controlled in the country consisted of using dollars from international reserves to inject them into the exchange market. In this way they increased the supply of foreign currency and kept the price stabilized.
*Also read: BCV injected dollars into banks six times a month in 2021 to contain the exchange rate
This procedure was denounced for months by economists such as José Guerra, founder of the Venezuelan Finance Observatory (OVF) and deputy of the National Assembly (AN) elected in 2015. As a result of the recent increase in the dollar, he stressed that a rise in the dollar is expected even more pronounced.
As soon as the Venezuela Dollar Monitor update was published, the parliamentarian highlighted that the variation in the last seven days was 13% and that the shortage of reserves of the Central Bank of Venezuela (BCV) will prevent the upward trend from being contained.
“The price of the dollar is totally out of control. Between last Friday and today, the dollar increased 13%. It is the largest weekly increase so far this year, with the aggravating circumstance that the BCV has no way of containing the upward trend because it has no reserves. Obviously inflation will accelerate », he insisted.
The price of the $ totally out of control. Between last Friday and today the 19th, the $ increased 13%, the largest weekly increase so far this year. With the aggravating circumstance that the BCV has no way of containing the upward trend because it has no reserves. Obviously inflation will accelerate pic.twitter.com/uDP5pwD19t
– Jose Guerra (@JoseAGuerra) August 19, 2022
On the other hand, the differential between the official dollar and the parallel rate widens more every day. This Friday the exchange rate established by the BCV stood at Bs 6.18. That is, 12.4% less than the parallel.
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