Re:Venezuela Follows India’s Example and Voids Half of Its Cash
by jimmywanger on Saturday December 17, 2016 @12:06PM
(#13201390)
> If you can cut down the influence of the black market you can restore goods being bought and sold using the local currency, which will slow down inflation.
The black market is the only place where you can get dollars for bolivars, not just bolivars for dollars, so it de-facto is the market for the exchange rate.
If the government persists in having this two-tiered exchange rate with no anchor in reality, no matter what they do, the black market will exist and be the only place normal people without connections can buy goods.
The black market is the only place where you can get dollars for bolivars, not just bolivars for dollars, so it de-facto is the market for the exchange rate.
If the government persists in having this two-tiered exchange rate with no anchor in reality, no matter what they do, the black market will exist and be the only place normal people without connections can buy goods.