Venezuelan Bolivar Plunges as Central Bank Stops Intervening and Public Spend...
The exchange rate of the Venezuelan bolivar, the national fiat currency of the country, has plunged 35.51% against the U.S. dollar this week as a result of various factors, reaching 8.70 bolivars per U.S. dollar. According to economists, this will cause an increase in prices in the near future, with the exchange rate predicted to reach up to 12 bolivars per dollar by December. Venezuelan Bolivar Drops 35.51% Against USD in a Week Many Latam countries are being affected by the strength that the U.S. dollar has shown this week. The Venezuelan bolivar, the official currency of the....
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All of this goes to show the situation in Venezuela is more troublesome than many people assumed. As if the financial situation in Venezuela isn’t bad enough, bank ATM withdrawal limits have been restricted. Every bank customer can withdraw US$5 worth of Bolivars per day from now on. Going to the bank teller behind the counter is subject to the same limits. Not a positive development by any means and the situation will only grow worse. These new guidelines were designed to go into effect as of December 1, 2016. Several Venezuelan banks are already enforcing these new limits without prior....
This plan by the Venezuelan government is a bold one, that will ultimately not entirely work as intended. The financial situation in Venezuela continues to go from bad to worse. Just last week, the government announced a new 20,000 bolivar bill to reduce the existing bank note supply. A new law will replace the current highest-denomination banknotes with coins in the following 72 hours. A similar strategy has been employed in India, which has not worked out at all. Replacing existing banknotes with coins seems like taking four steps backward. For the Venezuelan government, the decision....
Given the current exchange rate to and from Venezuelan bolivar, Bitcoin makes a lot more sense than the national currency. The financial turmoil in Venezuela is affecting a lot of local businesses. But internationals service providers are also growing more concerned about what is going on there. Destinia, a well-known travel agency, has confirmed they prioritize Bitcoin payments for Venezuelan flights. With little confidence in the bolivar and the growing demand for Bitcoin, this could be a turning moment for the company. This decision by Destinia is quite surprising, although not entirely....
Venezuela’s national currency Bolivar Fuerte is rapidly losing value amidst hyperinflation. The official FX value of the Venezuelan bolivar is $1 to 9.95 VEF but in actuality, in the country’s black market, local residents are paying around 5,000 VEF for $1. To avoid the devaluation of bolivar and acquire necessary daily goods, Venezuelans have started to rely on Bitcoin to finance their expenditures. By local exchange rates, 100 bolivar is equivalent to $0.02. The country’s highest denomination banknote was 100 bolivar, but the government demonetized it earlier this week. As a result, the....
Binance, the leading P2P exchange in Venezuela, is now present in several popular dollar indexes in the country. The price of USDT on Binance’s P2P platform is now used to calculate the average price of the dollar with other P2P and electronic markets. The Venezuelan currency, the Bolivar, took a plunge last week losing 10% against the dollar as the government considers a currency redenomination. Binance Makes Its Way Into Dollar Indexes Binance has made its way into popular dollar indexes in Venezuela, after becoming one of the most well-known crypto markets in the country. Now, the....