A woman holding bolivar notes in downtown Caracas. Photo: Federico Parra for Getty Images.
During a December 7 interview, Venezuelan parliamentarian Jesús Faría stated that the government of Venezuela will do everything possible to stabilize the exchange rate between the US dollar and the Venezuelan national currency, the bolivar.
Faría, who is the president of the Permanent Commission of Economy, Finance, and Development, attributed the recent devaluation of the bolivar to the growth of the economy and external pressures that are trying to destabilize the country.
He stated that there has been a 20% devaluation regarding the exchange rate as a consequence of the increase in demand for foreign currency outpacing the supply.
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He added that inflation and the economic blockade are fundamental reasons behind the devaluation of the bolivar and its effect on the exchange rate.
“If we were not economically blockaded, we would be able to produce all the oil that our own effort and capacities allow us to produce, sell it, and then access international markets to acquire technology and inputs necessary to improve oil production. In this way we would have a larger international currency reserve and a higher level of foreign currency income,” he explained.
The National Assembly deputy pointed out that Venezuela’s productive activity is on the rise and that the country has had two consecutive semesters of economic growth.
In spite of the slump in economic activity over the last few years as a consequence of the US-imposed economic blockade, the sanctions on the oil industry, and the lack of foreign currency income and fall in foreign currency reserves, the national economy is currently experiencing a recovery.
Faría added that the private sector grew at a rate of more than 18% compared to the public sector. The consolidated and definitive data on the national economy, presented at the end of the year, is expected to show the overall growth of the economy.
The deputy mentioned five elements that explain the recent growth of the economy:
- The progressive recovery of the oil industry, with the production of 800,000 to 900,000 barrels per day and the export of about 500,000 barrels per day.
- The growing activism and central role of the workers, since all the basic industries have become productive again.
- Investments by businesses and entrepreneurs.
- The realistic economic policies of the government, which are based on experience.
- Political stability.
(RedRadioVE) by Ana Perdigón
Translation: Orinoco Tribune
OT/SC/KZ
