Venezuela’s currency loses 43% of its value in one month.
This is what Democratic Socialism will do for you.
The last time we updated on the value – we use the term very loosely in this case – of the Venezuela currency, the Bolivar in the black market, was at the start of November, when one US dollar purchased 1,567 bolivars in the street. Fast forward not even two full weeks later, and the Venezuela currency has now officially crossed the “nice, round number” psychological hyperinflation barrier of 2,000/USD, trading at 2,014 today, crashing by 22% since our last check, and an vomit-inducing 43% in the past month.
The exponentially-rising chart below shows what hyperinflation in a destroyed socialist economy looks like.
Has anything changed so dramatically in Venezuela’s economic conditions to necessitate a nearly 50% devaluation in its currency in one month? Hardly. To be sure, the latent issues remain, the biggest of which is the latest slump in the price of oil which merely adds insult to injury for Maduro. According to Bloomberg, Venezuela is among the countries leading the latest push to overcome the divide between SaudiArabia, Iraq and Iran ahead of the upcoming OPEC meeting in Vienna. Naturally, there is a far more selfish reason why Venezuela is desperate the price of crude rises.
And while Venezuela waits for the latest disappointment out of OPEC, Reuters reports that the country’s massively unpopular president, Nicolas Maduro, who presided over Venezuela’s terminal collapse and is only in power thanks to the army’s support, is now trying his hand at salsa music to cheer up his broke countrymen.