Venezuela’s Currency Has Had its Biggest Monthly Collapse

Re:Venezuela’s Currency Has Had its Biggest Monthly Collapse by dwightgunning on Thursday November 24, 2016 @05:34PM (#13033220)

I recently read a HN comment that used their once booming oil industry to illustrate this fact.

They have vast amounts of accessible light crude oil but due to their currency they're struggling to purchase/maintain the machinery in order to efficiently extract/refine and monetise it.

Talk about a vicious cycle.

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Re:Venezuela’s Currency Has Had its Biggest Monthly Collapse by Symbiote on Thursday November 24, 2016 @06:02PM (#13033337)

The less reliable your country, the less likely foreign businesses are to extend credit. If European and American companies, who probably manufacture the machinery, see the risk is too high, they will demand full payment upfront.

Venezuela can't pay for its banknotes: http://www.bloomberg.com/news/articles/2016-04-27/venezuela-...

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Re:Venezuela’s Currency Has Had its Biggest Monthly Collapse by zeroer on Thursday November 24, 2016 @07:14PM (#13033639)

Printing Bolivars isn't profitable enough ...

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