The day after the reconversion, you could buy the same 3 chapatis for 10 sovereign bolivars
. So, it seemed a logical step forward and an improvement.
The elimination of the 100 bolivar
($10.01) note, which produced a cash crunch, sparked two days of protests that left one dead and scores of businesses ransacked.
The Panama City-based airline, which has routes connecting the U.S., Caribbean and Latin America, said it's owed $488 million by the Venezuela government, valued at the official bolivar
rate of 6.3 bolivars
Transport Minister Hebert Garcia Plaza, for his part, said working groups have been set up with the airlines to agree on higher ticket prices, which would be reimbursed at a rate of 50 bolivars
to the dollar after July 1.
The devaluation brought down the official value of the bolivar
by 46.5 percent against the dollar.
While choking off imports of everything from newsprint to food, medicine and spare parts, the move has strengthened foreign exchange reserves--a key government goal to protect the bolivar
. At press time, reserves were $16.6 billion.
Yet it is still considerably more stable than the Venezuelan bolivar
, which lost two-thirds of its value against the dollar on the black market in November, its biggest ever monthly decline, according to data from DolarToday, which tracks the black-market rate.
It is expected that the bank could expand the purchase of dollars at a rate of 5.3 bolivars
, to lure foreign companies to invest more in the nation.
He already predicts an economic contraction of between 11% and 15% of gross domestic product (GDP) and a fiscal deficit of 4% of GDP--but only if the government devalues the bolivar
to average 2,500 bolivars
to the dollar in 2003, a 56% decline from the current official level.
He reduced the stronger official exchange rate from 6.3 bolivars
to the dollar to 10 bolivars
per dollar; in the weaker tier, a dollar would be worth much as 200 bolivars
The bank has decided an exchange rate of about 5.3 bolivars
per US dollar in a new currency market that debuted a day before.