By Cory Fischer-Hoffman - Venezuelanalysis.com, Nov 15th 2014
Cory Fischer Hoffman looks at the pressures facing the Venezuelan economy and the questions raised by the decision of President Nicolas Maduro’s government not to adjust (devalue) the country’s exchange rate in the near future.
Today both pro-government and opposition supporters held large marches in Caracas, as well as smaller ones around the country, to mark International Workers Day. While government supporters celebrated a minimum wage increase and the labour law, opponents of the government demanded a “fair wage”.
Venezuela's recent devaluation has sparked quite a bit of discussion in the international press. The Venezuelan opposition has naturally framed it as desperate move to head off inevitable economic collapse.
Venezuelan President Hugo Chavez announced a devaluation of the official exchange rate of the bolivar currency and the creation of a second rate denominated the “oil bolivar” for non-essential imports, in a nationally televised address on Friday.