Venezuela Announces Weaker FX Rate for Tourists

[Bacchus4.0]

http://online.wsj.com/news/articles/SB10001424052702303290904579276351207469542

Venezuela devalued its currency by 44% for tourists Monday, one of a series of expected moves as the economically-troubled South American country looks to boost its local-currency revenue.

Nonresidents will be able to legally exchange dollars for 11.3 bolívares as of Monday, compared with the previous exchange rate of 6.3 bolívares, according to a statement on the central bank's website.

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The new tourist rate, however, still doesn't match the country's currency black market where dollars are bought for more than 60 bolívares. With annual inflation above 50%, locals have been clamoring for greenbacks to protect their savings but state regulations limit access to hard currency, leaving a scarcity of dollars in the oil-rich country.
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Crude oil and petroleum products make up 95% of Venezuela's exports.

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95% petroleum based exports means they have little other viable industry. No different from the 1970s boom. If oil prices fall, so does the country.

[Paolo123]

1. We should go...

I wonder if they let you exchange on the way out. That is, could I show up in Venezuela and sell a dollar on the black market for 60 bolivars, and then turn around and exchange those bolivars back to the government for around 5 dollars?

[Bacchus4.0]

2. I posed the same question about 3 or 4 months back

you could definitely sell your dollars on the black market for a very favorable rate. What I tend to doubt is your ability to buy back dollars with your Bs. I thought of going to Caracas and selling dollars on the black market and then changing back at the airport in Miami and making a huge profit. There has to be a catch and they might not even exchange Bs for dollars these days outside of Ven.

p.s. However, if you are someone with access to dollars such as a government official or some Boligarch that is exactly what they do. Sell their dollars on the black market and buy near the gov rate. Instant wealth and you can repeat as often as you like.