Exchange Rate in Venezuela
Venezuela - Exchange Rate
Central Bank devalues bolívar; liberalizes FX transactions
The Venezuelan bolívar soberano was sharply devalued, yet again, by the Central Bank (Banco Central de Venezuela, BCV) on 22 April. It brought the official exchange rate roughly up to par to that of the black market, to 5,200 VES per USD from around USD 4,100 just a few days prior. Despite the adjustment, however, the gap between the two widened in the following days. On 10 May, although the official DICOM exchange rate was largely stable at 5,203 VES per USD, the parallel market rate fell to 5,790 the same day. Overall, the bolívar has continuously lost value since its introduction through the monetary reconversion last August, undergoing a massive devaluation of over 95% since then. In addition, the bolivar is over 85% weaker than at the beginning of the year.
Meanwhile, on 2 May, the BCV announced the elimination of currency exchange controls, aiming to increase the amount of foreign currency that is bought and sold in the country. Under the new policy, banks would set up and run exchange tables, which would be utilized by individuals, firms or other financial institutions for their foreign currency transactions. Banks would then be required to report on a daily basis the volume of transactions and average exchange rates, which the Central Bank would then report to the wider public. That said, questions remain over the specifics of the policy’s application. Details such as how the supply and demand of hard currency would be regulated, for instance, have yet to be released.
Venezuelan Bolivar Exchange Rate Forecast
Against this backdrop, FocusEconomics panelists expect the official rate to end 2019 at 28.6 million per USD, before rising to 1.5 billion VES per USD by the end of 2020.
Venezuela - Exchange Rate Data
|Exchange Rate (vs USD)||6.30||10.00||10.00||638.2||46,621|
5 years of economic forecasts for more than 30 economic indicators.
Venezuela Exchange Rate Chart
Source: Thomson Reuters.
|Bond Yield||5.50||0.0 %||Aug 19|
|Exchange Rate||248,832||0.0 %||Aug 17|
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Venezuela: Inflation falls to over two-year low in May but remains sky-high and is expected to spike on Covid-19 fallout
June 8, 2020
National consumer prices rose 38.6% form the previous month in May, up from April’s 27.5% month-on-month increase and marking the highest print in four months, according to data released by the Central Bank of Venezuela (BCV) on 8 June.
Venezuela: Inflation falls to two-year low in March but remains sky-high and is expected to spike on Covid-19 fallout
April 24, 2020
National consumer prices rose 13.3% from the previous month in March, down from February’s 21.8% month-on-month increase and marking the lowest print since June 2017, according to data released by the Central Bank of Venezuela (BCV) on 24 April.
March 26, 2020
On 17 March, a nationwide quarantine was declared by the government to fight the Covid-19 health crisis.
February 4, 2020
National consumer prices rose 31.5% from the previous month in December, up from November’s 25.7% month-on-month increase, according to data released by the Central Bank of Venezuela (BCV) on 4 February.
October 19, 2019
On 19 October, the Central Bank of Venezuela (BCV) released fresh macroeconomic data for the first time in six months, underscoring the severity of the crisis currently gripping the country.