And Now Venezuela Will Have To Go It Alone
Reuters
But OPEC has indicated that it won't cut.
This means Venezuela will likely have to go it alone. The country will have to get through its economic free fall without the help of higher oil prices [boosting the value of its massive oil exports], and it is going to be an incredibly difficult road.
In the last year the country's inflation rate has grown to around 64%, its export basket has fallen over $30 to $68.97 (a four-year low), currency reserves are at an all-time low. For the last month Venezuelan bonds have been selling off at breakneck speed.
Venezuela's foreign minister, Rafael Ramirez, told reporters earlier this month that the country was ready to cut oil production. The commodity makes up 95% of the Venezuela's export revenue.
Pantheon Macroeconomics
Earlier this month President Nicolas Maduro's regime reiterated that it would not devalue the Venezuelan bolivar. The black market bolivar to dollar rate is already almost 120 to 1.
Bond traders have said that they're "scared as hell" of what will happen to the country, and that it is on one road with no exits - the road to default.
All this said, oil prices alone won't save Venezuela. The country needs to take concrete policy action. However the Maduro regime is too busy shoring up support in the base, too busy squashing opposition and seeing phantom enemies everywhere, too busy constructing some ideological reasoning for the country's malaise, to enact any constructive policy to save its own people.
It isn't OPEC's mandate to save Venezuela from itself, after all.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Markets rebound in early trade amid global rally, buying in ICICI Bank and Reliance
- Women in Leadership
- Rupee declines 5 paise to 83.43 against US dollar in early trade
- Election Commission issues notification for sixth phase of Lok Sabha polls
- 6 Coffee recipes you should try this summer
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market