SICAD II, the sequel, coming to theaters Feb 24th

“Erm, Mr. Ramírez, I think when they told you nothing attracts investors more than greenbacks they had something else in mind…”

In the midst of social crisis, an airline boycott and massive amount of bolivar liquidity Ramirez announced that SICAD II will be launched on Feb 24th. Not many details available yet as they will be disclosed tomorrow but here are the bullet points of what we know:

  • Rate will fluctuate with government intervention with fix amounts sold each day. According to Ramirez: “it will make economic sense” #NOT.
  • Companies, public entities and people will be able to access it through brokerages.
  • SICAD II will use a combination of cash and bonds.
  • Airlines will be able to use SICAD II.

No less, no more. All this was announced in the Venezuela-Cuba summit. So behold a new devaluation with no plan for either fiscal or monetary policy available. And amid all this insanity, nobody even registered that they’re more or less floating the bolivar. Under this conditions, the rate will sink the bolivar to new depths.