Venezuela Devalues Bolivar for Airlines, Remittances

[Bacchus4.0]

http://www.bloomberg.com/news/2014-01-22/venezuela-devalues-bolivar-for-airlines-remittances.html

Venezuela devalued its currency for airline tickets and incoming foreign direct investment as it attempts to halt the hemorrhaging of dollars that has pushed international reserves to a 10-year low.

Airlines will be reimbursed for ticket sales at the exchange rate used at weekly auctions, which last sold dollars at 11.36 bolivars, compared with the official rate of 6.3, Economy Vice Minister Rafael Ramirez told reporters in Caracas today. Venezuelans traveling abroad and foreigners sending remittances overseas will also buy dollars at the auction rate, he said. The bolivar is trading at 78 on the black market.

“We don’t have the ability to give preferential rates for travel,” said Ramirez. “We can’t take away dollars from medicine imports to give them to travelers.”

Airlines have an equivalent of $3.3 billion in bolivars in Venezuela, which they can’t expatriate because of exchange controls, according to the International Air Transport Association. Payment delays led Madrid-based Air Europa to suspend sales this month, while other airlines have reduced sales in bolivars.

[MADem]

1. If they keep devaluing it, it'll solve the toilet paper crisis....

They should just cut to the chase, and go to the dollar until they can get their shit together. Ecuador uses the USD, and it works for them.

If they can't stand us, they can go to the Euro, if they'd like.