Devaluation announced

March 3, 2005

The Government announced today that it had devalued the  currency by 10.7% from Bs. 1,920 per US$ tp Bs. 2,150 per US$ as was projected in the 2005 budget. It was uncclear if this percentage was given out of incompetence or simply another attempt to fool some of the people some of the time as the true percentage is 11.97%.


This devaluation had been expected for quite a while, ever since former Minister of Finance Nobrega had announced it for January 1st. The budget was calculated at this exchange rate, but the delay implies a deficit of 2% with respect to the original budget. The devaluation is effective immediately.


The parallel market fist jumped up to near 2900 per US$ to later drop to 2740, closing around 2790.

This entry was posted on March 3, 2005 at 10:50 am and is filed under Venezuela.

Leave a comment