Barclays Capital: Blinding Sicad exchange rate hints strong devaluation
The investment bank postulates that had the average exchange rate been near VEB 6.30 per US dollar, the Venezuelan government would have deemed it a success and disclosed the data
Failure to disclose the average exchange rate bet by the companies for the US dollars prompts investment bank Barclays Capital suggest a strong devaluation of the local currency, for the second time in 47 days.
"First explanation about why the (Venezuelan) government did not announce the price of the first auction at Sicad seems to be a significant devaluation of the currency," the investment bank hypothesized in a note.
Barclays added that in light of this scenario, Venezuelan authorities abstained from revealing the average price of the bets for the US dollar, thus "avoiding the political cost of the announcement of a second devaluation in less than two-month term."
Had the average exchange rate been near VEB 6.30 per US dollar, the Venezuelan government would have deemed it a success and disclosed the data, they reasoned.
Pablo Jiménez Guaricuco was summarily dismissed from his Clerk III job at the Autonomous Service of Public Registries and Notaries' Offices (Saren). He read a notice published in a newspaper on November 5 informing the public that he was no longer employed to the Saren. He was sacked despite the fact that he was taking a leave of absence from work due to a work-related accident, and that he enjoyed security of employment under the parental job-immunity privilege. Most probably, the decision was influenced by his role as a union organizer. But what did he do, besides leading protests, to deserve the sack? Well, he allegedly sent off a series of tweets that definitely hurt the sensitivity of the Saren Directorate.