Venezuela devalues its currency by 37%..raises fuel price by 1300%
Venezuela’s president, Nicolás Maduro, on Wednesday devalued the currency by 37 percent and raised fuel prices for the first time in 17 years. The measures are meant to help shore up the nation’s finances as dropping oil prices and a collapsing state-led economic model have left the country with a severe recession, high inflation and product shortages. The price of premium gasoline will rise to 6 bolívars from 0.097 bolívars a liter, but fuel is so heavily subsidized that filling up a small car will still cost about 23 cents, based on the black market exchange rate.
“This is a necessary measure, a necessary action to balance things, I take responsibility for it,” Maduro said, in reference to the raising of heavily subsidised fuel prices.
The socialist leader insulted opposition leaders and occasionally used foul language during the combative four-hour speech on Wednesday.
His critics quickly dismissed his moves as insufficient. There are fears the changes risk fuelling triple-digit inflation at a time when millions are struggling to make ends meet. They come two months after the ruling Socialist party suffered a blistering defeat in parliamentary elections due to anger over the crisis.
The package is likely to be seen by Wall Street investors – who are increasingly concerned about a potential default – as mildly positive but still vastly insufficient to help Venezuela make $10bn in debt payments amid a major cash crunch.
Siobhan Morden of Nomura wrote: “Bottom line is no change to cashflow for this year and hefty year-end debt payments.”
welcome to the jungle..
i think this will bring maduro to his knees..”mission accomplished” for the west eh?
“The package is likely to be seen by Wall Street investors – who are increasingly concerned about a potential default – as mildly positive but still vastly insufficient to help Venezuela make $10bn in debt payments amid a major cash crunch.”