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- Venezuelan fiat currency, Bolivar, plunged 35.51% against USD this week.
- The economist predicts the price will go upto 12 bolivar per dollar in December, 2022.
- At present it is at the price of 8.70 bolivar per dollar.
Venezuelan Bolivar Price Analysis
The plunge of 35.51% in bolivar that was noted this week, depends on various factors. Even major Latam countries got affected by the performance of the U.S. dollar this week. The national currency of Venezuela, Bolivar, performed at the exchange rate of 8.70 per U.S. dollar, as per Monitor Dolar. Monitor Dolar is the famous Twitter account that analyses and averages the U.S. currency on different exchanges. While, on popular P2P exchange, Binance, the price of Bolivar reached over 9 bolivar per dollar.
Major Factors that Affect Bolivar
However, the official exchange rate reached 7.10 bolivars per U.S. dollar, 1.60 bolivars less than the parallel value. The head of market research firm Ecoanalitica, Asdrubal Oliveros, discussed the factors that are affecting the exchange rate. The first one is the rise in public spending is a must, so the citizens put in more bolivars and the companies interested in dollars maintain their savings.
The second one is the intervention by the Central Bank of Venezuela. Its execution on putting dollars on sale via national banks. The following intervention was reduced this week, by the source report that less than 20% of what is commonly auctioned was offered this week.
Luis Arturo Barcenas, who is a Venezuelan economist, predicts that the exchange rate will rise between 10 to 12 bolivars per dollar by the end of 2022. He stated, “The monetary mass has doubled in 8 months, due to the pressures that the government has received for the payment of salaries and bonuses.”
Furthermore, the Central bank of Venezuela organised a new intervention to put $200 million in an auction on national banks this week. It is a step to stop the rise of the exchange rate.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
