Basically, the country has become too insecure to be insured. This means that any Japanese company exporting to Venezuela will have to cover the risk of not getting paid for their shipments on their own. This will significantly decrease Japanese exports to Venezuela.
Embarassing? Certainly, but it’s more than that. The Japanese are basically saying that anyone who buys stuff from Japan is likely to not get paid by a country where a normal currency market has simply disappeared, and where the fiscal viability of the State itself is in shatters.
By the way, this comes at around the same time that our Finance Minister has said that, no, the price of gas will not go up. There is no stopping the crazy.Caracas Chronicles is 100% reader-supported. Support independent Venezuelan journalism by making a donation.