Venezuela Closes 2021 with Stable Exchange Rate

The Bolivarian Republic of Venezuela ended 2021 as the year with the best economic recovery rates in recent times, after the onslaught of the United States government and the European Union with the financial blockade and sanctions against the country, according to data released by the Central Bank of Venezuela ( BCV).

On new year’s eve, the official reference price of the US currency remained between 4.5 and 4.6 bolívars per dollar. In this regard, it was informed that the governing body of Venezuela’s monetary policy injected around $230 million into the market in the month of December to maintain the exchange rate stable and within limits.

According to the information compiled by websites specialized in financial matters, the BCV has placed an additional $10 million for market injection. With this, 68 economic operations of this type were carried out by BCV throughout the year that has just ended, like many central banks all over the world to to keep macro-economic indicators within predefined limits.

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“Until now, the BCV had regularized the interventions on a weekly basis, but this Wednesday it decided to make a complementary intervention, which had an immediate response in the parallel market (black-market exchange rate); where after a 1.33% rise at the opening, at the close the average price lost 0.18% and ended at 4.79 bolivars per dollar,” Banca y Negocios website informed.

Economic war
The price of the dollar is one of the instruments most used by the power centers in the United States, to exert pressure on inflation and generate instability in countries on which the US government has imposed illegal sanctions.

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After the monetary rebranding of the bolívar that the government of President Nicolás Maduro implemented in October 2021, an attack against the national currency was evident, through the disproportionate increase in the price of the US dollar in the black market.

However, the rate specified by the Central Bank of Venezuela (BCV) remained stable according to estimates; which exposed the maneuvers aimed at inducing volatility, speculation and tension in the Venezuelan financial market.

This black market maneuvers were also intended to deal a symbolic blow to the bolívar by trying to push the exchange rate above 5 bolívars per dollar. Those actions intensified as November 21 approached, the date on which the country held regional and municipal mega-elections.

With all this, the country receives 2022 with great expectations given the impulse that commercial activity has experienced in 2021 in the midst of the blockade and the pandemic, as well as the government’s determination to keep the illegal dollar market at bay.


Featured image: US dollars and Venezuelan bolívars in the hands of Venezuelans. File photo.

(RedRadioVE) by José Manuel Blanco Díaz

Translation: Orinoco Tribune


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