Price control and salary increases: how is the economic plan of Venezuela
This week, the Executive agreed to resume, after two years, a price control policy on more than 40 consumer products to fight against “speculation” that, in the Executive’s opinion, has triggered inflation and affected the exchange market. in the last weeks.
In the last seven days, the price of the currency in the official market increased by 20%, according to reports from the Central Bank (BCV), while in the parallel market the increase has been greater, shooting up from 13.78 bolivars to 18.26 bolivars, an increase of 32%.
The minimum wage and pensions, set at 130 bolivars last March, have since then lost 69% of their value, as a result of the devaluation of the bolivar, with which they went from $29.68 to $9.20.
The Executive has been applying a strategy to contain the exchange rate that consists of controlling the demand for dollars, reducing the issue of bolivars -necessary to buy foreign currency- through the reduction of public spending and the restriction of financing.
However, in recent months, The Government increased spending with several payments to public workers, while it has been releasing credits, which increased by 123% in the last year.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
