Saturday, November 26, 2016

Venezuela’s Currency Just Had the Biggest Monthly Collapse Ever - Bloomberg

Venezuela’s currency - the so-called “strong bolivar” - is weakening beyond levels that analysts had forecast just a few weeks ago as an expanding money supply chases a limited amount of U.S. dollars.
The currency has lost 45 percent of its value so far this month to trade at 2,753 bolivars per U.S. dollar on Thursday, according to dolartoday.com, a widely-watched website that tracks the exchange rate in Caracas. That’s the biggest monthly decline ever, according to data compiled by Bloomberg.

Inflation in the country will likely rise to 400 percent in 2016, according to the median estimate of 13 analysts who responded to a Bloomberg survey. Individual responses ranged from 257 percent to 1,500 percent.
Venezuela’s money supply has risen 127 percent over the past year, according to the latest data available from the Central Bank in Caracas and compiled by Bloomberg.....
http://www.bloomberg.com/news/articles/2016-11-24/venezuela-s-currency-just-had-the-biggest-monthly-collapse-ever

bth: it is hard to imagine the situation correcting itself with political opposition splintered and the price of oil remaining below recovery rates in Venezuela.

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