Economy
The US dollar has reached its lower level thus far this year in the unofficial market due to the higher supply of dollars through the issue of Pdvsa's foreign currency-denominated bonds.

According to financial sources, the state-run oil holding Petróleos de Venezuela (Pdvsa) is selling to brokerage houses part of the papers maturing in 2017 and 2011 that were bought back recently by the oil company.

Brokerage houses sell immediately the bonds on the market and cause a reduction in the price of the US dollar in the unofficial market (under the Venezuelan laws, it is prohibited to disclose the parallel exchange rate).

At the same time, a rumor according to which the Ministry of Finance will issue new dollars-denominated bonds that companies could pay in Venezuelan bolivars has made brokers believe that in the short term there will be a greater supply of dollars in the swap market.

Therefore, companies and individuals are selling their dollars to have Venezuelan bolivars and buy back the US currency next week when, if the rumors are true, the huge issue of bonds will cheapen the dollar even more.

The authorizations of foreign currency at the official exchange rate have decreased because of the fall in oil prices. As a result, the unofficial market has gained importance in the Venezuelan economy.

Translated by Gerardo Cárdenas