Street Dollar Rate Increased Over 40% in Less Than a Month

Here we go again.

  • The bolivar keeps depreciating compared to the dollar. The official exchange rate was 7.83 bolivars on Thursday, according to the Venezuelan Central Bank (BCV), which represents an 11.69% increase from Wednesday. On the other hand, the black market dollar increased 2.75% and closed at 9.33 bolivars. In fact, the black market dollar increased by over 47% in the last two weeks. On Thursday, the BCV said that it injected 200 million dollars into the banking system to stop the dollar from increasing. However, economist Asdrúbal Oliveros said that “due to the magnitude of the devaluation, stabilizing the exchange market will take time and resources.” Economist José Manuel Puente said the bolivar is “extremely overvalued” and warned that the “current exchange rate might be up to 20 bolivars.” This means that the exchange rate is a lot lower than its real value. Puente said the BCV wasn’t “an independent entity, it hasn’t been autonomous or a technical authority, and that’s one of the problems.” No amount of last-minute spending or closed stores to keep the price of goods will reduce the impact of another devaluation that destroys purchasing power. The BCV never stopped issuing bolivars that weren’t backed to finance the regime. 
  • The regime presented a new draft law at the National Assembly, to coordinate and organize states and municipal tax authorities. The draft law says that from now on, regional governments must consult the Supreme Council of Tax Alignment on any changes in the taxes they collect. In 30 minutes, Nicolás’s National Assembly approved the first draft of this project that Jesús Faría called “a profound, progressive tax reform” so those who have the most contribute in equal proportions. Because there’s no budget, we won’t know where this money will go. Faría also said that the devaluation was caused by the fragility that economic sanctions have caused. 
  • Maduro won’t be able to fulfill his promise on oil production, which has dropped 28% since December 2021, after a short-lived increase that year.  To produce 2 million bpd by the end of 2022, we’d need to triple the 629,000 bpd that were produced in July. 
  • ANC-imposed prosecutor general Tarek William Saab tweeted that the ministry designed a plan to sanction businesses that don’t use the official exchange rate to make transactions. Again, it’s the enjoyment of punishment that allows them to signal business owners as the culprits of this tragedy and yes, some people believe them. 
  • Despite Maduro’s regime not solving Venezuelans’ transportation problems, it has enough budget to send families of crewmembers of the Emtrasur plane to Argentina. 

The National Academy of Medicine reiterated the recommendations issued in July, declaring a sanitary alert to mobilize resources and stop the spread of monkeypox. Venezuela has publicly confirmed three cases so far. 

  • UN High Commissioner for Human Rights Michelle Bachelet said she’ll call Maduro before her term ends in a week, to talk about “promises that shouldn’t be forgotten.” She defended the cooperation that started in 2019, even though critics accuse her of letting Nicolás use her to save face. 
  • Bachelet asked for the negotiation between the regime and the opposition to resumeand highlighted the importance of a political transition in Venezuela. She said she’s hopeful that her representatives in Caracas will have access to political prisoners and to court hearings again. Chavismo has blocked them. 
  • Human Rights Watch (HRW) considers that renovating the mandate of the Fact-Finding Mission is fundamental, since Venezuelan authorities will only obey if international pressure continues. The Mission can keep doing crucial work, which can complement international mechanisms like the ICC. 
  • The Panamanian border service captured Venezuelan citizens who had conned migrants in the Darien Gap. This coyote was denounced for abandoning a group of 15 migrants in the jungle, including eight minors. 
  • Rixon Moreno Oropeza was accused in MIami of participating in a scheme for money laundering with Petropiar, from which he obtained over 30 million dollars for contracts that he got by bribing Petropiar executives. 
  • A U.S. court of appeals annulled a ruling by judge Robert N. Scola, who confiscated Samark López’s fortune in 2020. He is considered Tareck El Aissami’s middleman. The case was sent back to court and the assets won’t be available until a jury concludes if there are ties with FARC.
  • The Latin Recording Academy awarded Yordano Di Marzo with the Musical Excellence Award 2022.  “We celebrate his legacy,” said the academy. 
  • Yulimar Rojas will participate at the Diamond League in Switzerland on Friday. 
  • On Wednesday night, Argentinian president Alberto Fernández criticized prosecutor Diego Luciani, who just asked for a 12-year sentence for Cristina Fernández de Kichner (CFK). He compared Luciani to prosecutor Natalio Nisman, who committed suicide. “I hope prosecutor Luciani doesn’t do anything like that,” said Fernández. Luciani responded and said that a president or minister who should be practicing republican values but is trying to override institutions is deeply concerning. The opposition asked for a political trial against Fernández for his attacks on the justice system.

Naky Soto

Naky gets called Naibet at home and at the bank. She coordinates training programs for an NGO. She collects moments and turns them into words. She has more stories than freckles.