Kenneth Rijock

Kenneth Rijock

Saturday, March 7, 2015

BLACK MARKET RATE FOR US DOLLAR EXCEEDS 269 BOLIVARS, AS VENEZUELA'S ECONOMY SELF-DESTRUCTS

With the rapid loss in value of the Venezuelan Bolivar, now exceeding 269 to 1 on the black market, and the scarcity of the US Dollar on the streets of Caracas, Country Risk for Venezuela has now reached the level where all transactions with Venezuelan companies, or even the government, are so fraught with risk that they should be totally avoided, under all circumstances. Any existing investment should be immediately liquidated, where possible, even at a loss, lest it be totally destroyed in the near future, when the economy collapses.



 Crime levels in the country are out of control, the rule of law has been totally abandoned in favor of government-directed court decisions, and those in the middle class who can leave, are doing so in droves, if they have not already done so. The imposition of mandatory visas for US nationals means that one may not be able to quickly solve in-country problems with American-owned businesses or investments through a personal visit. In essence, Venezuela has reached the point where only those willing and able to lose their entire investment should contemplate any activity in that country. Things are predicted to deteriorate further, which could mean financial and social chaos and disorder.


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