Venezuela’s 95% Devaluation Adds to Turmoil After Drone Attack
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Harsh economoic measures may test Maduro’s grip on power
- Inflation likely to worsen after devaluation, wage increase
Venezuelan President Nicolas Maduro announced dramatic measures to rescue the country’s flailing economy, including a staggering 95 percent devaluation of the bolivar, in a move that will test the capacity of already beleaguered citizens to stomach even more pain.
The official rate for the currency will go from about 285,000 per dollar to 6 million, a shock that officials tried to partly offset by raising the minimum wage 3,500 percent to the equivalent of just $30 a month. While Maduro boasted in Friday night’s announcement that the International Monetary Fund wasn’t involved in the policies, aspects of the moves bore a resemblance to a classic orthodox economic adjustment, albeit with some confusing twists…
Venezuela’s 95% Devaluation Adds to Turmoil After Drone Attack
