http://english.eluniversal.com/2008/10/15/en_eco_esp_oil-continues-to-rul_15A2071129.shtmlEconomy
Although the Venezuelan economy has grown steadily for the last 18 consecutive quarters, official statistics suggest that Venezuela's dependence on petrodollars has worsened, as they are vital to afford skyrocketing imports dedicated to meet demand in stores and supermarkets.
At the end of June, USD 94 out of every USD 100 entering the country came from oil, non-traditional exports declined seven percent compared to the first half of 2007 and trade dependence on Colombia and Brazil continued to swell quickly.
In January-July, Colombian exports to Venezuela totaled USD 3.17 billion, 39.3 percent higher than in the same period in 2007. This amount is above the USD 2.70 billion-worth total imports in 2006.
In contrast, between January and July, Venezuela exported to Colombia a series of items totaling USD 738.7 million, which represents a decline of 14.4 percent over the same period last year, according to data from Colombia's National Administrative Department of Statistics (DANE).
Major Colombian exports to Venezuela include foodstuff, textiles, leather, chemicals, plastics and apparel, among others.
According to Brazil's Ministry of Industry and Trade, at the end of September Brazilian exports to Venezuela totaled USD 3.68 billion, a 12.4 percent increase versus the same period in 2007 and above the USD 3.56 billion recorded in 2006.
Although during the first nine months this year Venezuelan exports to Brazil increased by 74 percent when compared to the same period in 2007, they amount to USD 451 million only.
Encouraging imports
Since Venezuela's official exchange rate remains unchanged as of March 2005 at VEB 2.15 per US dollar, while prices have climbed 60 percent increase, the US dollar, together with gasoline, are the cheapest goods in the domestic market. As a result, the Venezuelan currency is overvalued and there is an apparent imbalance: what can be purchased with VEB 2.15 in Venezuela is by far less than what one can buy with USD 1 abroad. Therefore, there is a growing tendency to import products.
As inflation in Venezuela is the highest in the hemisphere, costs for Venezuelan businessmen increase more rapidly than in the United States, Brazil and Colombia, the country's major trading partners.
According to a study performed by consulting firm Ecoanalítica, Venezuela's exchange rate is 52.1 percent overvalued against the dollar; 22.9 against the peso and 29.8 percent against the Brazilian real.
Until now, Venezuela has enough and cheap US dollars to afford imports. However, the international scenario has begun to take an unexpected turn. Amid the crisis that shakes the developed countries, the price of the Venezuelan basket of oil dropped 35.3 percent in thirteen weeks and has fallen to USD 81.78.
If oil prices continue to plummet, imports could become burdensome.