Wednesday, February 17, 2016

Maduro up gasoline and devalues ​​the bolivar against severe crisis – Yahoo Finance Spain

The president of Venezuela, Nicolas Maduro announced Wednesday increased world’s cheapest gasoline and a devaluation to tackle the deep economic crisis country.

the 95-octane gasoline (super) it was $ 0.01 was increased for the first time in 20 years and will sell for $ 0.6, announced the president on television.

rising gasoline was almost taboo under the recollection that in 1989 price increase was one of the triggers of the “Caracazo”, as it was called to a social explosion bloody.

“I call for peace and respect for all these necessary decisions. when we install a system to ensure access to oil at fair prices has come,” Maduro said.

the ruling socialist also announced reforms in the complex Venezuelan currency system starting Friday will have only two slots (currently three).

the dollar to import food and medicine went from costing 6.3 bolivars to 10 bolivars, implying a 37% devaluation of the national currency. Another strip of the exchange system will be “floating” from 200 per dollar.

“The system changes we will simplify two bands (…) seeks to stimulate production,” said Maduro without giving details of the new regime.

in addition, it announced a 20% increase in the minimum wage will increase from 9,600 to 11,520 bolivars ($ 1,152 to the new lower official rate and $ 11.5 the value of the currency on the parallel market).

Economists were skeptical the measures, since Venezuela is experiencing a severe crisis, with the highest annualized September 2015 inflation in the world -141% an economic contraction of almost 7% last year and a deficit of 20%

-. This requires more! –

Venezuela, with the largest oil reserves in the world and highly dependent on imports, dollars suffers a drought aggravated by the collapse of oil prices, the source of 96% of its foreign currency

the president said that the country’s income fell from 42,000 million dollars in 2013 to 12,500 million in 2015, down 70%.

independent economists attribute the lack of access to foreign exchange regime Track changes adopted in 2003 by the government of Hugo Chavez (1999-2013), which Maduro acknowledged on Wednesday that he is “exhausted”.

“No currency without paying suppliers, destroying the productive apparatus and without trust, the ads are salt truffles in a rotten steak, “said Luis Vicente Leon, president of Datanalisis.

the new system of two bands, which eliminated a third exchange rate of 13.5 bolivars for raw materials and industrial inputs, looking Maduro as the country jump from an oil rentier economy to a production model.

“the key is how many dollars will be provided at 10 and 200. how to challenge government does not offer 200 dollars, so has no way to respond to the avalanche of demand, “said economist Miguel Angel Santos.

to Asdrubal Oliveros, director of Econanalítica,” a devaluation or increased gasoline prices are not measures that will lift the Venezuela crisis. This requires much more, “he said.

The economy and daily life in Venezuela are disrupted by the black market currency, which surpassed the 1,000 bolivars, 100 times more than the new official rate plus low

-. the enemy to defeat –

Maduro took action in the context of economic emergency decree was vetoed by the opposition majority in Parliament but confirmed a week ago the Supreme Tribunal of Justice (TSJ), increasing the power struggle.

the government says inflation and shortages -main reflection of the crisis are part of the economic war that attributed to entrepreneurs right with the aim of provoking popular unrest to overthrow him.

Long lines formed at supermarkets to buy flour, rice, coffee, oil and other subsidized food, regulated sale.

“Venture and to change this government. Pocket cling to sustain people “reacted one of the parties of the opposition coalition Democratic Unity Roundtable (MUD).

The MUD ensures that the only way out of the crisis Venezuela is a “change of government” and ensures that the emergency decree follows a “failed model” of excessive state control.

the opposition, which controls Congress since last January for the first time in 17 years Chavista hegemony studying a legal way to shorten the mandate Maduro (2013-2019), for which evaluates a constitutional amendment or a recall referendum

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