Home News Economy Government unified exchange rate at 4.30 per dollar BsF
Government unified exchange rate at 4.30 per dollar BsF
Friday, December 31, 2010 00:00 0 Comments Anggie Martínez
Ciudad Guayana .- The scenarios presented by analysts of a possible devaluation of the currency strong, became reality yesterday when the Government spokesmen announced exchange rate unification.

At a press conference held in the capital, the Minister of Planning and Development and Finance, Jorge Goirdani, established that the dual exchange rate which had Bs2, 60, will be unified Bs 4.30 Bs 4.30 from January 1, 2011.

With this announcement, the Exchange Agreement is out of date number 39.3452 Monday, 11 January this year that would establish a preferential dollar to Bs 2.60 for imports of food sectors, health, education, and remain the BsF 4.30 for all sectors.

Although the president of the Banco Central de Venezuela, Nelson Merentes said that the unification of the exchange rate to 4.30 Bs will not have much impact on the Index of Consumer Prices (CPI), analysts will look forward to a rise reflected in cost of products.

"This decision allows us to simplify the management of this situation, and have no doubt that you will have a series of consequence in terms of the national economy and investment in 2011-2012 and will allow achieving the goals that we came reached, "said Giordani.

For his part, Chief economist Jesus said via Twitter that the elimination of the exchange rate of 2.60 demonstrates the failure of exchange rate policy of the Government, which described as untenable on several occasions.

View also supported by the financial analyst, Angel Garcia and director of Econometric Banchs for whom the Government to not have the backing of the rise in the price of a barrel of crude oil during 2004 and 2008 for each year maintained a significant 25 %, is now beginning to feel the consequences of wrong economic policies.

Referring to the system securities transactions in foreign currency (SITM) by which bonds are traded in U.S. government debt traded in Bs, the head of Planning and Development, and Economy and Finance said it will keep unchanged, and fully operational, with a 5.30 change per dollar.

Which replaced the IMTS market stock exchanges was driven by the state to control the illicit market claiming to be developed and led the dollar to a value twice as established.

Considerations

Considering that ten dollars, new revenue from the export of oil, economists point out that with the fall production of PDVSA and the accumulated debts of the oil, while continuing the attack on private currencies will continue to drought by Cadivi.



You must remember that President Chavez announced days before the VAT increase, which could raise a point, or reach 12 to 14%. And although the measure has not been formalized and even from states that produce the reduction in real income of the poorest strata, and consequently their consumption and saving capacity.

Hence the recommendations for citizenship, according to Banchs is that for those with fixed incomes and provided you have raised a useful destination, find mechanisms that debt and debt devaluation will erode and the effort to cancel will be lower.

It also said people with lower earning capacity, should take care of their jobs, be frugal in their spending, and to the extent of their abilities to invest in goods and appliances, and it is possible in the field of real estate.

GDP fell 1.9% in 2010

The chairman of the Central Bank of Venezuela (BCV), Nelson Merentes, told national media that the Gross Domestic Product (GDP) fell 1.9% in 2010. Figure that was one point higher than that reported by the Economic Commission for Latin America and the Caribbean (ECLAC), an organization that identified the energy crisis hit the country as the cause of greater weight to the fall in investment (-4 , 8%), private consumption (-2.8%), which accumulated inflation at 26.9%. Viewed as indicators that lead to global economic stagflation.