Venezuela: The lifeline, the triple currency
First, the triple currency:
Carlos Eire posts on how Maduro Institutionalizes Cuban-Style Economic Chaos in Caracastan
The Venezuelan currency — the Bolivar — has now been assigned three different values by Maduro’s economic ministers.
The official name for this institutionalized chaos is “Sistema Complementario de Divisas (Sicad)”.
This new “Sicad” system in Caracastan is much more than an open display of the Castronoid obsessios with acronyms for destructive and repressive government programs: it’s an acknowledgment of the existence of a black market. Under “Sicad” the Bolivar will have three distinct exchange rates. Right now, depending on what kind of financial transaction one is making, the Bolivar will be worth 10 cents on a US Dollar, or 6.3 cents on a US Dollar, or 3 cents on a US Dollar. The lowest of these three values is the real value of the Bolivar, for that is the value pegged to the black market, which is euphemistically referred to as the “parallel” market.
The purpose is to obscure the devalued currency’s worth so no one knows its worth.
Spain’s ABC has much more (in Spanish) on the 3-card Monty; the also point out that Argentina’s got the official and the black market rates. Clarín (in Spanish) has more on Argentina’s double currency.
And the lifeline,
Venezuela gets a lifeline from the United States
One government, however, has chosen to toss Mr. Maduro a lifeline: the United States. Last week Secretary of State John F. Kerry took time to meet Venezuelan Foreign Minister Elias Jaua on the sidelines of an Organization of American States meeting, then announced that the Obama administration would like to “find a new way forward” with the Maduro administration and “quickly move to the appointment of ambassadors.” Mr. Kerry even thanked Mr. Maduro for “taking steps toward this encounter” — words that the state-run media trumpeted.
What did Mr. Maduro do to earn this assistance from Mr. Kerry? Since Mr. Chávez’s death in March, the Venezuelan leader has repeatedly used the United States as a foil. He expelled two U.S. military attaches posted at the embassy in Caracas, claiming that they were trying to destabilize the country; he claimed the CIA was provoking violence in order to justify an invasion; and he called President Obama “the big boss of the devils.” A U.S. filmmaker, Timothy Tracy, was arrested and charged with plotting against the government — a ludicrous allegation that was backed with no evidence. Though Mr. Tracy was put on a plane to Miami on the day of the Kerry-Jaua encounter, Mr. Kerry agreed to the meeting before that gesture.
As I mentioned last week, the Tracy kidnapping worked.