The Venezuelan currency (the bolivar) is about to be devalued, as reported in this News article. There will be a fifth bolivar devaluation in nine years, as revealed by Venezuela’s president.
There will soon be a 32% devaluation, when the official exchange rate drops from 4.3 bolivars to the dollar to 6.3.
The administration seeks to solve a fiscal issue created by its increasing reliance on borrowing to satisfy spending obligations by raising the bolivar value of oil exports to the US and other countries.
Venezuelans Started Buying Items
People in Venezuela have been lining up to buy TVs, appliances, and plane tickets all day today in anticipation of the impending price hikes that were announced yesterday. The concern of a. increasing inflation prompted immediate spending among Venezuelans. b. a fall in prices. b) Falling prices. increased imports; option (d).
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Since Hugo Chavez’s Bolivian revolution began, Venezuela has experienced tremendous inflation and economic stagnation. Due to this, at the end of 2015, the annual inflation rate in Venezuela had reached 100%, up from 50% the year before. A 1,370% increase in just two years is deeply worrying.
As the inflation rate in Venezuela continued to rise, people began stockpiling goods in preparation for a possible future shortage. The pricing of commodities fluctuated daily with no increase in earnings.
The Venezuelan economy was in serious danger as the rate of purchases surged. There is currently an estimated yearly inflation rate of 10,000% in Venezuela’s GDP.
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Last Words
People in Venezuela have been lining up to buy TVs, appliances, and plane tickets all day today in anticipation of the impending price hikes that were announced yesterday. Thanks for reading our article Venezuelans Started Buying Items Immediately Because of Their Fear of.
