Venezuelan Bolivar’s Crash Breaks Rare Stretch of Stability

The bolivar is plummeting, breaking a rare stretch of stability for Venezuela’s battered currency, Bloomberg News reported. It has lost a third of its value so far this month, hitting 9.33 bolivars per US dollar on the parallel exchange market Thursday, according to data compiled by Bloomberg. That’s the steepest monthly decline since January 2021. Controlling the exchange rate has been a key ingredient of President Nicolas Maduro’s strategy to halt a four-year hyperinflation bout, which ended in December. The currency, which had consistently lost nearly all of its value over the years, was relatively stable since a redenomination in October as the central bank poured hundreds of millions of dollars into the exchange market to keep it in check. The bolivar started to show weakness in the parallel market at the end of last month, though most of the losses have occurred this week. The spread between the parallel rate and the official central bank rate of 7 bolivars per dollar is now the widest since the October, when six zeros were slashed from the currency in the redenomination. Read more.