de facto dollarization hits Venezuela
Venezuela enter into an informal dollarization process
Posted on December 8, 2017by Luis Mendoza in Carousel , Research
(translated from Spanish)
Venezuela entered into a kind of informal dollarization. The hyperinflationary spiral in which the country is submerged, which pulverized the purchasing value of Venezuelan money, has led citizens to spontaneously migrate to the metallic currency of greater weight in the region, even though the Constitution establishes the bolivar as the official currency .
Prices in the nation go hand in hand with a parallel whose value rises daily, and there are even those who already choose to price their products or services with the US currency or the "change of day".
Examples of the aforementioned are many. The purchase, sale and rental of vehicles or real estate, and even services such as photography are quoted in green tickets within the "Bolivarian" territory , but why does this happen?
"This is a consequence of the hyperinflationary process where the currency, in this case the bolivar, loses value before the holders and in view of this situation the economic agents begin to realize that having bolivars does not mean any reserve of value of their assets , assets or their work so they are dollarized ", explains the economist Guillermo García.
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http://www.caraotadigital.net/investigacion/dolarizacion-informal-venezuela/
The bolivar Fuerte is worthless. However, there is a bright side to this debacle! There is a simple joy that that more and more Venezuelans are partaking in... using small denomination BsF to wipe their ass (it costs less than toilet paper), and then they stick them to posters or murals of
El Finado or Maduro, or whatever Chavista picture/portrait is handy.
Venezuela may soon join Ecuador, East Timor, El Salvador, Marshall Islands, Micronesia, Palau, Turks and Caicos, British Virgin Islands and Zimbabwe in abandoning their own currency and embracing the US dollar.
