Venezuela’s Currency Just Had the Biggest Monthly Collapse Ever
- The ‘strong bolivar’ has lost 45% of its value this month
- Rapid devaluation to stoke inflation already in triple digits
Why Venezuela's Many Crises Keep Getting Worse
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Venezuela’s currency - the so-called “strong bolivar” - is weakening beyond levels that analysts had forecast just a few weeks ago as an expanding money supply chases a limited amount of U.S. dollars.
The currency has lost 45 percent of its value so far this month to trade at 2,753 bolivars per U.S. dollar on Thursday, according to dolartoday.com, a widely-watched website that tracks the exchange rate in Caracas. That’s the biggest monthly decline ever, according to data compiled by Bloomberg.