Christian Science Monitor
Economist Intelligence Unit
La Prensa (Panama)
National (Abu Dhabi)
New York Times
Radio France Internationale
Times of London
Contact (PGP Key)
Hugo Chávez's daughter poses with US dollars|
Jan. 26, 2012 — Caracas, Venezuela
Published by GlobalPost
A picture of Venezuelan President Hugo Chávez's teenage daughter fanning out US dollar bills has appeared on the Instagram website, focusing attention on her father's controversial economic policies which have led to a shortage of greenbacks back home.
Foreign currency in Venezuela is extremely scarce thanks to currency controls that limit individual exchange to just $3,000 per year. The policy was brought in nine years ago in order to clamp down on capital flight but has instead forced a black market which often sees trade at between 8 and 9 Bolívares Fuertes (BsF) to the dollar rather than 4.3 BsF — the fixed rate.
Venezuelans therefore must either forego foreign holidays and business trips costing more than $3,000 or buy dollars at the black market rate and lose half of their cash to the unfavorable exchange rate.
Cadivi is the government agency responsible for official exchange and is often criticised for corruption, whereby those who know the right people can go over their annual limit of dollar purchases.
The 14-year-old Rosinés Chávez Rodríguez flaunts the notes in front of her face in a picture most likely taken on an Apple product such as an iPhone or iPad. Marisabel Rodríguez, Rosinés' mother, now divorced from the president, defended her daughter's actions on Twitter. "The mistake wasn't to take the picture," she wrote, "but to post it on a medium where there are ignorant people."
The black market is favorable to those living in Venezuela paid in foreign currency. They often take advantage of the parallel rate to buy local currency at the inflated rate of between 8 and 9 BsF to the dollar. International purchases — flights, for example — bought with local currency on the black market are therefore roughly half price.
Some poor Venezuelan parents give away children amid deep crisis
Dec. 15, 2016
Desperate to dump soon-worthless cash, Venezuelans flock to banks
Dec. 13, 2016
Inflation-hit Venezuela to pull largest bill from circulation
Dec. 11, 2016
Venezuela confirms bigger bills amid world's highest inflation
Dec. 04, 2016
Venezuela PDVSA awards $3.2 bln oil service contracts, protest brews
Sept. 21, 2016
Maduro revels in support from Zimbabwe, Iran as critics decry failed summit
Sept. 18, 2016
Venezuela summit draws few leaders in blow to Maduro
Sept. 17, 2016
Near Venezuela summit, pots-and-pans protest showed domestic tumult
Sept. 17, 2016
Once 'Pearl of Caribbean' gets new shine for Venezuela summit
Sept. 16, 2016
Maduro boasts start of Venezuela summit despite 'gringo pressure'
Sept. 13, 2016
Venezuela's troubles overshadow Non-Aligned Summit
Sept. 11, 2016
Venezuela renews drilling tender after earlier collapse - sources
Aug. 26, 2016
Hungry in a Venezuelan slum, a Facebook Live video
Aug. 04, 2016
In Venezuela's murky oil industry, the deal that went too far
Jul. 26, 2016
'We want food!' Looting and riots rock Venezuela daily
Jun. 12, 2016