Head of Cavidi shows his ignorance and his piety….

February 14, 2003

The Head of the newly formed exchange control organization Cadivi, said today among many other things ” we should all pray so that the oil industry is brought back to normal and we can then have more dollars”. (How about bringing back the workers, we know it would work). Later he showed his ignorance when he said that the Brady bond exchange mechanism was suspended because it led to capital flight. This mechansim, by which you buy a Venezuelan Brady bond in local currency and sell it in the US for US$, does not constitute capital flight since you need someone doing exactly the opposite, so that the net result is simply zero. This is the man in charge!

This entry was posted on February 14, 2003 at 1:13 am and is filed under Venezuela.

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