Melvis Humbría, economist and member of the MAS, describes as “childish” that the Maduro government tries to make Venezuelans believe that “the imbalances in the exchange market are the product of fixing the price of the North American currency on a web page, pretending to evade the responsibility of the Central Bank of Venezuela, the issuing and regulating entity of our monetary policy” and that finances the budget of “a government that spends more than it enters”
Melvis Humbría, economist and member of the Executive Committee of the Movement for Socialism (PLUS), warned this Monday, December 12, that the new accelerated devaluation of the bolivar in recent weeks would once again show the failure of the national government in economic matters. “The ambiguity and inconsistency in the monetary and fiscal policies implemented are taking their toll, laying bare the hackneyed saying that Venezuela has fixed itself.”
He explained that once again the ghost of hyperinflation “which caused so much damage during the four years that it lived in the economy and whose consequences are still suffered by lower-income Venezuelans” is revived.
The economist described as a “childish” attitude that the national government tries to “make us believe that the imbalances in the exchange market are the product of fixing the price of the North American currency on a web page, thereby trying to evade the responsibility of the Central Bank of Venezuela, the issuer and regulator of our monetary policy, which became the petty cash to finance the budget deficit of a government that spends more than it enters.
For humbria, the intervention of the Executive during the year 2022 in the foreign exchange market for an amount greater than five billion dollars failed to stabilize the exchange market «and hence the problems we are facing today; which will be difficult to overcome in the immediate future if they maintain the same economic policies.
On the return to price control and exchange control, leaned by officials of the so-called “economic cabinet”, the economist pointed out that “neither in Venezuela nor in any part of the world where these measures were implemented, good results were achieved; This generates the opposite of the objective sought, which is why price control is synonymous with scarcity and shortages. Exchange control increases the black market for foreign exchange, he pointed out.
In the opinion of the expert, given this reality, it is urgent that the Government put aside arrogance and call for a great agreement in which political, social, trade union, union, business and church actors participate.
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