Patrick Gillespie – June 28, 2017
Violent protests are growing, the economy is spiraling further out of control and Venezuelans are suffering through shortages of food and medicine. And the bolivar, already worth next to nothing, keeps losing value.
At the beginning of the year, it took about 3,000 bolivars to buy one U.S. dollar. By Wednesday, it took almost 8,000. That’s according to dolartoday.com, which tracks the unofficial exchange rate used by most Venezuelans because official rates are considered overvalued.
“I’d describe it as the result of a government that prints money like it’s confetti,” says Raul Gallegos, senior analyst at Control Risks, an international consulting firm. “The government has simply employed the wrong policies to stay in power.”
Government corruption and mismanagement have triggered hyperinflation. Prices are set to rise a staggering 720% this year, according to the International Monetary Fund.