Given the increase in the parallel dollar and after the arrival of a new ceiling of Bs. 7 of the official exchange rate, the BCV called for this Wednesday a $200 million cash auction
“Another black Wednesday”, this is how some Venezuelans described the spike in the price of the parallel dollar this Wednesday, August 24. However, the rise of the currency does not stop and this Thursday the 25th again shows a significant rebound until reaching the new top of 9 bolivars.
According to web pages that record how the currency is traded on the parallel market, the dollar began the day with an increase of 4.4% or Bs. 0.38 compared to Wednesday’s price of Bs. 8.70. The shortage of dollars and the high demand that has been registered in recent days made this August 24 reflect a rise of 10%.
Venezuela has a long history of currency devaluations that have led the country to processes of hyperinflation and economic downturn, due to erroneous macroeconomic policies and controls. In recent weeks, a shortage of foreign currency and an increase in public spending affected the “stability” that the foreign exchange market maintained during the first half of 2022.
?️ 08/25/2022
? 9:00 AM
? Bs 9.08
? 4.40% Bs 0.38#Telegram?? https://t.co/sDXmVjBJ9K pic.twitter.com/65qHPK7ZE8– Dollar Monitor Vzla (@monitordolarvla) August 25, 2022
Given this increase in parallel and after the arrival of a new ceiling of Bs. 7 of the official exchange rate, The Central Bank of Venezuela (BCV) called for this Wednesday an auction of foreign currency in cash, in which the exchange tables of public and private banks participate. According to some sources in the banking market, the issuing entity decided to auction some 200 million dollars this week, a figure well above the amount placed in the previous days of $90 million.
The BCV The supply of foreign currency to banks had decreased to protect international reserves and to test a new strategy in the money and exchange market, with the placement of Exchange Coverage Securities. However, according to market sources, these auctions have not had the success expected by the authorities.
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