Venezuela cash crunch note

Minor item, but I had thought Venezuela’s recent cash crunch came from the Amuay refinery explosion and the need to import lots of fuel for international prices. I downloaded the convenient chart of the country’s black market currency rate from dolartoday.com and I see that the steady exchange rate broke down on August 15, while the explosion didn’t happen for another two weeks. So if there was any causal connection, it might have been the other way. Chart:

Cucuta-rate

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2 Comments

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2 responses to “Venezuela cash crunch note

  1. vijay

    did not help though. Another point is Ven. started importing refined fuel in significant quantities only after 09/11/2012. May be they burned through the stored refined products until September.

  2. Robert

    Maybe some people knew the explosion was going to happen. Okay, I’m kidding but I can see Chavistas making that argument.