CARACAS, Venezuela (AP) — A staggering plunge in the free market value of Venezuelan currency sent people scrambling to sell off their depreciating bolivars Friday.

The widely followed website DolarToday, which tracks exchanges along the Colombian border, reported that the South American country's currency lost a quarter of its value over the last eight days.

The site's app has become so ubiquitous that everyone in smartphone-obsessed Caracas seemed to find out about the crash through 400 to the dollar at the same instant, as DolarToday sent out a series of alerts announcing the new numbers under the headline "hyperinflation!"

Venezuelan currency was trading at 415 bolivars per dollar Friday, according to the site. That's down from 300 bolivars per dollar on May 14. It stood at 173 when the year started.

While many black market dealers paused transactions until the rate stabilizes, some Venezuelans said they had changed money at the 400 bolivar rate Friday.

It was not immediately clear what prompted the sudden drop, though a Barclay Capital Inc. report issued Friday described the underlying cause as government expansion of the money supply.

"We do not see any signal of change from the authorities but these risks should make them reconsider their policies," it said.

Barclays projected the Bolivar could dip as low as 600 to the dollar this year.

The administration of President Nicolas Maduro keeps tight control over the legal exchange of bolivars, using a byzantine three-tier system. It is meant to subsidize crucial imports, but has led to widespread corruption and speculation.

The strongest rate is 6.3 bolivars per dollar. The weakest official rate, which was billed as an alternative to the black market when it was rolled out earlier their year, has inched up to 200 bolivars per dollar. The fact many are willing to pay double that price for black-market dollars indicates the supply is limited.

The Maduro administration has been hoarding dollars as it grapples with falling oil prices. That has contributed to shortages and other economic distortions.

DolarToday is openly hostile to the socialist government and carries news stories attacking it. But the site insists its exchange rate reports are based on actual trades at exchange houses on the Colombian side of the border and are not manipulated to undercut the government.

In April, Maduro repeated his assertion that the site's shadowy managers, whose identities are not public, are collaborating with the speculators and opposition leaders he blames for the country's problems. He accused them of purposely sowing chaos and promised to have them arrested.

"We're going to put those people at DolarToday who are waging an economic war against Venezuela behind bars, sooner rather than later" he said.


http://news.yahoo.com/currency-tumbles-venezuelans-look-offload-bolivars

Any country that refuses to be a western puppet suffers same fate, Nigeria is a very good example. It's even worse when such a country is oyel dependent like Russia

This one is strong jeez,and you need a really strong leader to oversee a country in such a state,not some old man who blieves in travelling to another country so often he looks like some puppet.

kemdaniels:
This one is strong jeez,and you need a really strong leader to oversee a country in such a state,not some old man who blieves in travelling to another country so often he looks like some puppet.

Your pedestrian postulation is even stronger

GMB's victory must have hurt you greatly You just had to bring his name in to explain why the currency of Venezuela is in free-fall

What other calamity will you attach to his first trip to the UK in 3 months? the migrant crises in south east Asia?

If GMB isn't a strong leader, who is? Bros J?

If GMB whom your master and his associates wasted taxpayers money trying to paint as a rigid, dictatorial, fanatical muslim and stubborn leader is a puppet of the west, I'm sure you wouldn't be caught dead mentioning arch angel Jona who COULDN'T control Diezani talk-less of his wife as the non-puppet?

Don't worry, the UK govt haven't forgotten he's the man who tried to crate one of Jona's fathers(according to GEJ himself) from the UK to answer corruption cases in Nigeria neither have they forgotten his govt jailed Britons and seized a British airways plane in retaliation for their reaction to the incident. If you don't know, they know and are very sure he can't be anybody's puppet

This is one of the countries Nigerians are quick to point to when removal or reduction of oil subsidy is suggested.

The scarcity of basic needs in that country is phenomenal!

They have even introduced a '666-like' smartcards to track citizens' purchase of these lacking essentials.

If only Nigerians could see and appreciate the full picture.

theV0ice:


Your pedestrian postulation is even stronger

GMB's victory must have hurt you greatly You just had to bring his name in to explain why the currency of Venezuela is in free-fall

What other calamity will you attach to his first trip to the UK in 3 months? the migrant crises in south east Asia?

If GMB isn't a strong leader, who is? Bros J?

If GMB whom your master and his associates wasted taxpayers money trying to paint as a rigid, dictatorial, fanatical muslim and stubborn leader is a puppet of the west, I'm sure you wouldn't be caught dead mentioning arch angel Jona who COULDN'T control Diezani talk-less of his wife as the non-puppet?

Don't worry, the UK govt haven't forgotten he's the man who tried to crate one of Jona's fathers(according to GEJ himself) from the UK to answer corruption cases in Nigeria neither have they forgotten his govt jailed Britons and seized a British airways plane in retaliation for their reaction to the incident. If you don't know, they know and are very sure he can't be anybody's puppet

my guy you took the words out of my mouth.dont mind that smellows .they will never be free cause the truth is not in them.with al the rubish clueless jona did to destroy our economy .in civilized climes he would be going to jail for the rest of is life

One more crude trunkline going off in the Niger delta and Nigeria will be worse off.

The incoming govt have their work cut out for them.

kemdaniels:
This one is strong jeez,and you need a really strong leader to oversee a country in such a state,not some old man who blieves in travelling to another country so often he looks like some puppet.

Lie! The problem is leadership. How come this wasn't experienced when the late Hugo Chavez was the President? Stop giving excuse for Jonathan's cluelessness.

OrlandoOwoh:

Lie! The problem is leadership. How come this wasn't experienced when the late Hugo Chavez was the President? Stop giving excuse for Jonathan's cluelessness.

late Hugo Chavez also had the same problems, thought in his time it was less pronounced, because oil price was good. If late Hugo Chavez was still alive today he would have had the same issues. I would seriously urge Nigerians to be ready for hard times if oil prices, don't at least get up to $80 per barrel soon, the new government will have to make a lot of cuts and probably raise taxes.

onojiwizardgmailcom:


late Hugo Chavez also had the same problems, thought in his time it was less pronounced, because oil price was good. If late Hugo Chavez was still alive today he would have had the same issues. I would seriously urge Nigerians to be ready for hard times if oil prices, don't at least get up to $80 per barrel soon, the new government will have to make a lot of cuts and probably raise taxes.

Nigerians need to pray for Elon Musk to fail, with his battery technology. If his battery storage works, then God help this country.