11 de diciembre de 2019
ÚLTIMAS NOTICIAS:
English - News

Maduro: De facto dollarization is economy's escape valve

 Photo made available by Miraflores Press showing Venezuelan President Nicolás Maduro in an interview with Venezuelan journalist Jose Vicente Rangel (out of frame) in Caracas, Venezuela, 17 November 2019. EFE/EPA/Miraflores Press HANDOUT HANDOUT / EDITORIAL USE ONLY/NO SALES

Photo made available by Miraflores Press showing Venezuelan President Nicolás Maduro in an interview with Venezuelan journalist Jose Vicente Rangel (out of frame) in Caracas, Venezuela, 17 November 2019. EFE/EPA/Miraflores Press HANDOUT HANDOUT / EDITORIAL USE ONLY/NO SALES

Caracas, Nov 17 (efe-epa).- Venezuelan President Nicolas Maduro said that he does not disapprove of the de facto "dollarization" that one sector of his country's economy is experiencing, declaring that the phenomenon acts as an "escape valve" that contributes to the "recovery and deployment" of productive forces.

"That process that they call dollarization can serve to recover and deploy the country's productive forces and the functioning of the economy. It's an escape valve, and thank God it exists," said Maduro in an interview broadcast on Sunday by private television channel Televen.

"Perhaps what I'm going to say might be a sin for the masters of dogma, but I'm going to tell you something: I don't see it badly ... I confess I'm a sinner," he added before confirming that the phenomenon arose due to the "necessary self-regulation" of the Venezuelan economy, which has contracted by more than 50 percent since 2013, according to the country's parliament.

Venezuela's currency - the bolivar - is the only legal means of exchange in the country and since 2003 exchange controls give the state the exclusive power to administer the flow of dollars in the economy, which mainly enter via petroleum sales, another activity that is exclusively in state hands.

But EFE has verified that after the relaxation of the exchange controls over the past year a good portion of Venezuelans have taken refuge in the US currency to guard their assets with an eye toward dealing with the rampant inflation in the bolivar, which so far in 2019 has skyrocketed by more than 4,000 percent, according to the report issues each month by parliament.

Maduro said that "all economies of the world are dollarized" in some manner, and in Venezuela's case - the currency of which was strong in the 1970s - the situation is not something new.

A sector of the Venezuelan economy "was always dollarized. What is happening is that it was dollarized with the state's petrodollars and now the self-regulation of the economy has appeared," he said.

Venezuela is the country with the world's largest proven petroleum reserves, but it is going through the biggest economic crisis in its modern history, with cyclical scarcities and high inflation.

The country has also seen its foreign earnings cut by the plunge in petroleum production to around 700,000 barrels per day, the lowest level in the history of the state-run PDVSA oil company.

Comentarios

Histórico de noticias
Judge raises Weinstein's bail for tampering with ankle bracelet

New York, Dec 11 (efe-epa).- Harvey Weinstein will have to put up a total of $5 million in bail, a considerable increase over the $1 million he has been...

WH says Trump warned Lavrov on election meddling, Lavrov says no he didn't

Washington, Dec 10 (efe-epa).- President Donald Trump on Tuesday warned Russian Foreign Minister Sergey Lavrov that Russia should not interfere in the US...

US launches urgent recovery operation for 7 reefs in Florida Keys

Miami, Dec 10 (efe-epa).- US environmental authorities on Tuesday launched an "urgent" program to halt the destruction of seven coral reefs in the Florida...

Oscar Isaac: In "Star Wars" there's always hope

By David Villafranca

Former high-level Mexican security official arrested on drug charges in US

New York, Dec 10 (efe-epa).- Genaro Garcia Luna, who served as Mexico's public safety secretary from 2006 to 2012, has been indicted on drug trafficking...

Exxon Mobil wins New York climate cost case

New York, Dec 10 (efe-epa).- Exxon Mobil, the largest US petroleum firm, was found not guilty Tuesday in a lawsuit filed by the New York State Attorney's...

Social organizations launch camp-in to protest Chilean gov't deafness

Santiago, Dec 9 (efe-epa).- Representatives of different Chilean social organizations on Monday launched a camp-in protest in downtown Santiago to denounce...

Democrats present the basics of impeachment case against Trump

By Alex Segura Lozano

New delay in forced sterilizations case in Peru, under way for 20 years

Lima, Dec 9 (efe-epa).- The case involving alleged forced sterilizations performed in Peru during the 1990-2000 term of former President Alberto Fujimori on...

Jesus, Virgin Mary caged and separated in controversial Nativity scene

Los Angeles, Dec 9 (efe-epa).- A Methodist church in Southern California has adapted its traditional Nativity scene this year by putting the Baby Jesus, the...

Trump warns Kim he will lose everything if he takes hostile action

Washington, Dec 8 (efe-epa).- President Donald Trump warned North Korean leader Kim Jong-un on Sunday that the latter will lose "everything" if he acts in a...

Artists give rhythm to Colombia protests with 6-hr music concert in Bogota

By Ares Biescas Rue

Beekeeping, alternative to unemployment and social crisis in Nicaragua

By Martha Delgado

Dragon Spacecraft delivers cargo to International Space Station

Miami, Dec 8 (efe-epa).- A Dragon cargo spacecraft belonging to private space services company SpaceX delivered its payload on Sunday to the International...

Art Basel Miami Beach banana ends up where it should

Miami, Dec 8 (efe-epa).- "The Comedian," the controversial work of art by Italy's Maurizio Cattelan consisting of a banana fastened to a wall with duct tape...

PETA asks Nordstrom chain to stop selling garments made from animal hides

New York, Dec 5 (efe-epa).- The People for the Ethical Treatment of Animals (PETA) organization on Thursday staged a "bloody" protest in front of a...

Heroes, villains and Hollywood stars, face to face in Brazil

By Nayara Batschke

Argentine President-elect Fernandez's law students discuss him as a teacher

By Carmen Herranz

Pelosi takes offense at reporter's question about whether she hates Trump

Washington, Dec 5 (efe-epa).- House Speaker Nancy Pelosi on Thursday took offense at a reporter's question about whether she hates President Donald Trump, a...

Pelosi takes offense at reporter's question about whether she hates Trump

Washington, Dec 5 (efe-epa).- The speaker of the United States House of Representatives, Nancy Pelosi, on Thursday formally instructed the Judiciary...

US urges countries to suspend digital taxes, calls for OECD talks on issue

Washington, Dec 4 (efe-epa).- US Treasury Secretary Steven Mnuchin on Wednesday urged countries to "suspend" their individual digital services taxes and to...

Santa Claus taxi driver collects toys for poor kids in Mexico

By Manuel Lopez

Trio of legal scholars tell Congress Trump abused his power re Ukraine

Washington, Dec 4 (efe-epa).- Three prominent experts on constitutional law, called to testify by Democrats before Congress on Wednesday, told the House...

US proposes tariffs on France after Paris imposes digital tax

By Alex Segura Lozano