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Venezuela Lets Bolivar Slide But Can't Keep Up With Black Market

  • Government weakened bolivar by 67 percent since December
  • Official rate still trails far behind black-market FX rate

Given Venezuela’s deep economic crisis, the fact that the government has devalued its official rate massively in the past month has barely made any headlines.

Most people focus instead on the black market exchange rate which is accessible for all and which sets most prices in the beaten-down economy. Despite the government’s efforts over the past decade to stamp out the street trading of money, the market has flourished and the struggle to have a single rate looks doomed without a series of economic reforms and policies that would correct the imbalances.