May 19, 2013
THERE'S ONLY ONE SAFE HAVEN:
Maligned dollar flourishes in Venezuela (Juan Forero, May 17, 2013, NY Times)
Because the bolivar is artificially overvalued and practically worthless outside of Venezuela, everyone here is desperate for dollars, from auto-part importers to supermarkets to ordinary Venezuelans planning to travel abroad. Even government officials and the politically connected businessmen who have made fortunes off the free-spending state search out and trade in dollars.The dollar may fluctuate in other markets, or even make a spirited comeback against some currencies, as it has this year. But here in Venezuela people know that the greenback skyrockets in just one direction -- up, to be bought and sold on an illegal and shadowy parallel market the government has been unable to control."We depend completely on the dollar," said one black-market dollar dealer, who asked that he only be identified by his first name, Fernando, for fear of winding up in jail. "Buying dollars is practically the national sport."
Posted by Orrin Judd at May 19, 2013 9:25 AM
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