Venezuela's new forex system opens at 170 bolivars to dollar

[Bacchus4.0]

CARACAS (Reuters) - Venezuela's new free-floating foreign exchange system has opened at an average price of 170 bolivars to the dollar, below the black market rate of 190, the Central Bank said on Thursday.

President Nicolas Maduro's government this week created the new currency platform, called Simadi, as the third system in a three-tier exchange control mechanism.

The currency controls now comprise a preferential rate of 6.3 bolivars per dollar for food and medicine, a complementary rate of 12 bolivars for other goods through a system called Sicad, and the floating rate via Simadi.

The opening 170 bolivar Simadi rate for the first transactions on Thursday was higher than most economists' predictions, which had ranged from 120-150.

ttp://mobile.reuters.com/article/idUSKBN0LG31E20150212?irpc=932

[Marksman_91]

1. So essentially they've officialized the biggest single devaluation of currency in Venezuelan history

Another great achievement of the "revolution"

[Bacchus4.0]

2. Not gonna help the shortages or inflation problems n/t

[MADem]

3. It does look that way, but I guess we're just supposed to "not notice" is their hope...? nt

[Marksman_91]

4. It's likely they announced it during Youth Day, which marked the 1st anniversary of Feb 12th...

... because they assumed most people would be paying more attention to the protests and what-not. Really discreet on their part, gotta give 'em that.

[MADem]

5. Makes sense...! nt

[COLGATE4]

6. Let's see what the black market rate for B's is

once the bureaucratic flaws in the new exchange rate become evident. Anyone betting on 200?