Bolivar vs. US Dollar
- From 2005 to 2009 the official exchange rate was 2 bolivars to one US dollar.
- In 2009 the official exchange rate soared to 4.3 to the dollar.
- In 2013 the official exchange rate soared to 6.3 to the dollar.
Venezuela allows "very limited" trading at 50 to the US dollar in a parallel exchange called Sicad II.
On the black market today, it takes 89 bolivars to buy 1 US dollar. That is a 95% loss in value vs. the official exchange rate since 2013.
Black Market Record Low
Bloomberg reports Venezuela’s Black Market Bolivar Slides to Record Low.
Venezuela’s bolivar fell to a record low against the U.S. dollar on the black market today as the government tightens currency rationing to pay maturing debt.Bond Default Coming Up?
A dollar fetched 89 bolivars on the Colombian border today, compared with the official exchange rate of 6.3 bolivars, according to dolartoday.com, a rate-tracking website. Two black market traders in Caracas, who asked not to be named because the trading isn’t legal, confirmed the record-low rate.
Inflation reached 60.9 percent in May, the last month for which figures are available, while according to economists surveyed by Bloomberg gross domestic product shrank 2.1 percent in the second quarter. The economic decline is pushing people to seek out dollars to protect the value of their savings, at the same time that the government tightens supply, Henkel Garcia, director of Caracas-based consulting firm Econometrica, said by telephone.
“The government has reduced disbursements of dollars at the secondary markets in recent weeks,” said Garcia, citing non-public data from the Venezuelan Banking Association. “They are trying to save up as many dollars as possible to meet obligations to bondholders.”
Venezuela has $4.5 billion of bonds maturing in October, according to data compiled by Bloomberg. The country’s foreign reserves reached an 11-year low of $20.1 billion on Aug. 21.
Officials have tried jailing traders, shuttering brokerages and setting up four parallel exchange systems to stem the rise of the unofficial rate in the 11 years since former President Hugo Chavez began controlling the bolivar’s price. Currency controls have failed to slow the world’s fastest inflation, while leading to shortages of everything from razors to cars.
Venezuela’s benchmark dollar bonds due in 2027 fell 0.44 cent at 12:37 a.m. in New York to 79.01 cents on the dollar. Yields on the note rose 8 basis points to 12.56 percent.
I wonder why 2027 bonds trade as high as 79 cents on the dollar, even with 12.56% interest rate.
On the $4.5 billion in bonds maturing in October, default seems likely enough.
If Venezuela makes the payment, its currency reserves will fall to about $15 billion. When that is gone, it's lights out. No more imports of anything.
Those who have the money to get out, do so.
But every day the cost goes up: Trapped in Venezuela: Looking to Get Out? Good Luck!
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
1 Komentar Untuk "Venezuelan Bolivar Plunges to Record Low on Black Market; Bond Default Coming Up in October?"
HOW I GOT MY LOAN FROM DR KELLY WILLIAMS LOAN FINANCE
My Brothers and Sister all over the world, I am Mrs.Irene Query Wheat from philippines ;i was in need of loan some months ago. i needed a loan to open my restaurant and bar, when one of my long time business partner introduce me to this good and trustful loan lender DR KELLY WILLIAMS that help me out with a loan, and is interest rate is very low , thank God today. I am now a successful business Woman, and I became useful. In the life of others, I now hold a restaurant and bar. And about 30 workers, thank GOD for my life I am leaving well today a happy father with three kids, thanks to you DR KELLY WILLIAMS Now I can take care of my lovely family, i can now pay my bill. I am now the bread winner of my family. If you are look for a trustful and reliable loan leader. You can Email him via,mail (financialgoodnews22@hotmail.com) Please tell him Mrs Irene Query Wheat from philippines introduce you to him. THANKS
LOAN APPLICATION FORM:
First Name:
Last Name:
Next Of Kin:
Date Of Birth:
Marital Status:
Address:
Sex:
Phone No:
City:
Zip Code:
State:
Country:
Nationality:
Weekly income:
Occupation:
Monthly Income:
Amount Needed:
Duration:
Date of loan needed:
Purpose of the loan:
E-mail address:
Regards.
Managements
DR KELLY WILLIAMS Lenders Finance Limited
Contact Us At :financialgoodnews22@hotmail.com
Out Of Topic Show Konversi KodeHide Konversi Kode Show EmoticonHide Emoticon