What happened in Venezuela so that the dollar goes up a lot in price?
Hello friends, this time I want to share my analysis of what has happened in Venezuela and how it has affected the economy.
From the premise of scientific thought I must emphasize that no market responds to the liveliness of anyone, prices are influenced by various factors, including supply / demand, reliability, etc. In this context I would like to explain what happened.
A few weeks ago PDVSA (government oil company) received a payment (finally) from some Chinese companies so the payment was made in Yuanes, said Yuan were sold to the Central Bank and were exchanged for Bolívares and said Bolívares were used to pay to suppliers, now: Why is this a problem?
No businessman if he wants to succeed and maintain profit margin should use Bolívares, not because he is stateless but the history of recent years tells us that the Bolívar is not worth anything, so if they receive a large payment in that currency they must leave her as quickly as possible, and how do they do it? Well, buy dollars.
By the way apparently the payment went to “preferential” providers if they know what I mean, since the vast majority are denouncing that they have not received payments for 6-7 months.