Venezuela does not have enough dollars for imports
Posted by admin . Published on 27 September 2009, Received
Venezuela imports most of high end products and also many consumer items from other countries, and pays for the same in US dollars. The Venezuelan currency has suffered a big beating in the last few months, only because the main source of revenue for the government i.e, crude oil , saw a big crash in the realization value.
The crude oil price went down by nearly 40% from above 125 dollars to below 70 dollars in the last one year. That has forced this country to issue three billion dollars worth of new US denominated bonds. The offer is expected to be completed in the next few days, and the proceeds might be exhausted within few weeks.
