Think tank Ecoanalítica forecasts 46.5% devaluation in Venezuela in 2013
A possible devaluation will generate USD 19.56 billion to the Venezuelan government
Think tank Ecoanalítica forecasts devaluation by 46.5% for 2013. Based on its estimates, current foreign exchange of VEB 4.30 per US dollar will go to VEB 6.30 per USD. The increase in the foreign exchange rate would generate incomes amounting to USD 19.56 billion in one year, since the government would get more Venezuelan bolivars per petrodollar.
Currently, the Venezuelan fiscal deficit amounts to 15% of GDP or USD 40 billion. The devaluation would partiality reduce fiscal deficit. However, devaluation would also entail inflationary pressure, which the government would have to tackle by adjusting the prices of controlled products.
Private imports will also be hit if devaluation is implemented in 2013, since the exchange rate of foreign currency bought through the Transaction System for Foreign Currency Denominated Securities (Sitme) may grow from VEB 5.30 to VEB 7.10 per US dollar, according to Ecoanalítica estimates.
Translated by Andreína Trujillo
As late as Tuesday, February 25, there was some visible response from Gabriela Ramírez's office. Representatives of the Office of the Ombudswoman would visit independent human rights watch groups to find what happened in connection with repression of protests. That day, they visited NGO Provea. The next day, they met with the attorneys of NGO Venezuelan Criminal Forum. They pursued specific data because -they argued- no claims of human rights violations of demonstrators had been filed with the Office of the Ombudswoman.