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.
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.