New exchange restrictions in Venezuela complicated ...

New exchange restrictions in Venezuela complicated …

April 11, 2015

When all eyes were on the Summit of the Americas in Panama, the Venezuelan government announced the reduction of the dollar quota assigned to those who travel abroad. The “quota” is the maximum annual amount that any Venezuelan without ties to the government and who wants to travel outside the country is allowed to buy per year.

The Ministry of Economy and Finance announced this Friday the changes in the exchange control regime, which include reducing the quota from $ 2,500 to $ 700 for travelers to the United States.

For other destinations, as well as the quota of expenses on the internet, the fees were also reduced, which depend on the country and the length of stay.

The government also reported that the awards –which are made in cash and, above all, in credit cards– will only be made through accounts in public banks.

Goodbye empire

The destination for which the quota was reduced the most was the United States, the main country to which Venezuelans have emigrated in recent years and one of their favorite places: Miami, according to the Conseturismo chamber, is the first tourist destination in Venezuela.

Faced with the complications of accessing foreign exchange, Venezuelans can buy dollars on the black market, where the currency is quoted up to 20 times higher than in formal channels.

As an example: at Friday rates, US $ 700 in the official market is 8,400 bolivars, while in the black market it is 161,000 bolivars.

A minimum wage is 6,000 bolivars.

The fact that more people have to go to the black market to buy dollars is another stimulus for inflation, which in Venezuela registers the highest in the region (68%, according to official figures).

via The new restrictions that complicate the travel of Venezuelans to the US – BBC Mundo.

Image: rvlsoft via Shutterstock – Tupungato via Shutterstock

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