The exchange rate

Concerning the exchange rate :

To begin in two thousand and eighteen, Venezuela replaced the bolivar fuerte with the sovereign bolivar with a value of one hundred thousand bolivar fuerte for one sovereign bolivar.

Then, Early in two thousand and eighteen, Venezuela’s central bank announced that it was devaluing its official exchange rate by more than ninety nine percent and launching a new foreign exchange platform called the DICOM.

The new DICOM system allows the sale and purchase of foreign currency (typically, United States dollars) in exchange for local currency, through auctions of foreign currency administered, regulated and directed by the Committee.

Dicom's objective is to combat the black market in venezuela by having a more flexible and appropriate exchange rate.

Then the Venezuelan government has been working on an new cryptocurrency named Petro. This new project will allow the Venezuelan government to sell their oil in exchange for their Petro cryptocurrency and bypass the sanctions imposed by the US at the same time.

The Petro is therefore seeking to replace the bolivar in international trade, although many countries are resistant to this controversial crypto-money.

Also despite all the efforts made by the government the inhabitants still have difficulties to replace the bolivar by the Petro.

Despite all the government's attempts to combat the black market, the fact that the bolivar is still overvalued against the dollar in the official exchange rates and the complexity of the different official platforms haven’t really curbed the parallel market.

Then, as mentioned above, the economic situation of the country is catastrophic, leading to a large black market in the exchange rate.

Since two thousand and three the State has been trying by all means to contain this by imposing strict controls and with the arrival of new means such as DICOM and Petro.

Thanks to this the State has managed to increase the gap between the official exchange rate and the parallel market of the bolivar against the dollar from thirty times more in two thousand and three to only four times more in two thousand eighteen.

However, the exchange rate still remains advantageous on the black market and even more so after the devaluation of the currency by ninety-nine percent in two thousand and eighteen.

In that year alone the Venezuelan government estimated its losses on the black market at between one hundred and fifty and two hundred million dollars.

To fight once again against the black market and the new sanctions, early two thousand and nineteen the State has launched a new platform called Interbanex, which aims to align itself with the black market exchange rates.

Sign of his failure Interbanex closed only a few months later.

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