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.
At least 30 years had passed since his last visit to Caracas. He had little time to become an expert on moving about in such a complicated metropolis. Whether it was hopping on the subway, finding directions, playing waiting games at public agencies, eating whatever he could and sleeping wherever he could, Guerrero senior had been wandering the streets for 60 days, and thanks to "the boys" he found some sort of relief by way of helping hands.