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After 99.99% Plunge, Venezuela’s Bolivar Has Finally Stabilized

  • Currency has traded around 4.5 to USD for past four months
  • Central bank sold about $1.5 billion to fx market in 2021
A vendor sells sculptures, made from Venezuelan Bolivar banknotes, near the Simon Bolivar International Bridge in the town of La Parada on the outskirts of Cucuta, Colombia.
A vendor sells sculptures, made from Venezuelan Bolivar banknotes, near the Simon Bolivar International Bridge in the town of La Parada on the outskirts of Cucuta, Colombia.Photographer: Ivan Valencia/Bloomberg

The Venezuelan bolivar, after years of excruciating, relentless declines that have left it almost worthless and sunk millions into deep poverty, appears to have finally bottomed out.

The currency has traded at a rate of around 4.5 per dollar for the past four months, a newfound stability that’s come without much need for propping up by policy makers.