I’ve been wanting to write a post about devaluation for almost a year now but never got around to it. Today, Francisco Toro, from Caracas Chronicles, made it all clear.
By last Wednesday, that note was worth less.
By then, it could buy you just 49 and a half U.S. cents: 46.5% fewer cents, over the space one year.
Today, that same crisp bill is worth less.
As of yesterday, someone would trade you just 37.9 U.S. cents for it.
That’s 23.5% less, in a single week.
If that doesn’t give you a case of exchange rate vertigo, consider this: at the rate the bolivar has been losing value over the last week, by March 2016 one U.S. dollar will cost 12.4 million bolivars on the parallel market.
For the old-timers, that’s 12 millardos de los viejos.
That’s an extrapolation, not a forecast.
Still, the takeaway is clear: Venezuelans’ willingness to own bolivars appears to…
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