The experiment of the sovereign bolivar

[Askor lml]

the expert analyst Jesús torquemada says: Venezuela's economy remains the same, and therefore there is no reason to trust the sovereign bolivar.

 

The Venezuelan bolivar is worth nothing. Neither the bolivar that worked so far nor the so-called sovereign bolivar, which has just come into force.

The bolivar that had been up until now was devoured by a high inflation. To get a dollar on the black market, you had to pay 10 million bolivars. The government has removed five zeros and the resulting currency calls it a sovereign bolivar.

So it may seem that what used to cost 10 million now only costs 100. But that does not mean that you will be able to get a dollar with 100 sovereign bolivars. Whoever has a dollar will not sell it for that price.

The value of the coins depends on the confidence you have in them. Since nobody has confidence in the economic future of Venezuela, the bolivar was worth nothing. And this does not change overnight. Venezuela's economy remains the same, and therefore there is no reason to trust the sovereign bolivar.

The Government says that the sovereign bolivar is backed by Venezuelan oil. Well, we're going wrong; Venezuela produces less and less oil and imports more and more gasoline.

For the sake of the Venezuelans, we must hope that the monetary experiment of Maduro goes well, but it is difficult.