Competitive forex rate needed to boost industries
The Venezuelan Confederation of Industries (Conindustria) suggested a foreign exchange rate at VEB 7.8 per US dollar to stabilize the domestic industrial sector
The Venezuelan currency has been overvalued with respect to other currencies since 2003 upon the implementation of foreign exchange controls. Overvaluation is attributed to the gap between the country's inflation and price fluctuation in other nations.
Overvaluation is said to hamper the industrial sector as imports turn out to be cheaper than domestic products. Carlos Larrazábal, the president of the Venezuelan Confederation of Industries (Conindustria), said that bringing the fixed foreign exchange rate up to VEB 7.68 per US dollar would help reverse the loss of competitiveness.
Translated by Jhean Cabrera
Cristian Fonseca, a businessman in La Candelaria district downtown Caracas, was doing the accounts in his small shop office on Sunday December 21, 2008. The Christmas shopping season kept him working late hours into the night. It was around 11 p.m. and his phone rang. A friend broke the bad news to him over the telephone.