Official exchange rate deemed overvalued at 100%
International reserves fell down again to USD 25.7 billion
Macroeconomic policies in the agenda of the Government of President Hugo Chávez exhibit foreign exchange adjustment, even devaluation. However, the new political scenery raises doubt about the prompt implementation of this kind of decision making.
"We can see a combination of components that point to the need to fix the official exchange rate and open a foreign currency flow in line with imports and other payments required by the economy," maintained think tank Síntesis Financiera.
In the opinion of this firm, the official exchange rate at VEB 4.30 per US dollar is overvalued at 100%. It is a level approaching the record of 115% of overvaluation smashed in December 2009, just one month before the devaluation where two tiers of official exchange rate were set in order to lessen the inflationary impact of correction.
Minister of Finance Jorge Giordani has hinted the possibility not to disrupt the official exchange rate and enhance rationing of foreign currency.
The report released by Síntesis Financiera highlighted the performance of international reserves, which fell down again to USD 25.7 billion. It noted as well that international reserves have shed USD 4.1 billion this year.
At first she agreed that I use her real name, that she had no problems with that at all. After all, living with HIV had driven her to help others – as a workshop facilitator giving talks and conducting seminars, or as a volunteer for local AIDS Service Organizations like Acción Solidaria (Solidary Action) and Mujeres Unidas por la Salud (Women United for Health, or Musa), a support group network for HIV-positive women. But when we were well into the interview, the realization that she might lose her private health insurance coverage made her change her mind.