What happened in Venezuela so that the dollar goes up a lot in price?

in #blog5 years ago

Hello friends, this time I want to share my analysis of what has happened in Venezuela and how it has affected the economy.



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In recent weeks we noticed an increase in the price of the dollar both officially and in an extraordinary way reaching 28 thousand bsf (today it dropped to 20 thousand bsf), many blame "Creole liveliness" "the Venezuelan is a thief" and stop tell.

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.



Source/
These suppliers began to buy large amounts of Dollars paying with Bolívares, so the supply of Bolívares increased and the price was devalued.

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.



Source
It is a disgrace that the simple payment of oil to the state-owned company has such a negative impact on the economy of an entire country and not only that but PDVSA paid those it wanted.


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