Christian Science Monitor
Economist Intelligence Unit
La Prensa (Panama)
National (Abu Dhabi)
New York Times
Radio France Internationale
Times of London
Hugo Chávez's daughter poses with US dollars|
Jan. 26, 2012 14:55 GMT — 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.
Venezuela opposition launches protests, Maduro counters
Mar. 12, 2016 20:00 GMT
American Airlines to ax newly reinstated Caracas-New York route
Mar. 08, 2016 17:00 GMT
Venezuela military company to start services to PDVSA in weeks
Mar. 08, 2016 12:00 GMT
Tough road for Venezuela after dire data, inadequate measures
Feb. 19, 2016 17:00 GMT
Real or Barcelona? Venezuela president's economy speech seen as own goal
Feb. 18, 2016 17:00 GMT
Smuggling soars as Venezuela's economy sinks
Jan. 20, 2016 00:00 GMT
Cool language and fix economy, says Venezuela leader's former aide
Dec. 17, 2015 14:25 GMT
Vote shows Venezuela a 'great democracy,' says envoy to U.S.
Dec. 07, 2015 20:16 GMT
Venezuelan president's popularity bounces before election
Dec. 02, 2015 17:24 GMT
What arrests? Some Venezuelans in the dark about drugs scandal
Nov. 13, 2015 00:00 GMT
Venezuela opposition leader Lopez jailed for nearly 14 years
Sept. 11, 2015 02:00 GMT
Border closure turns once-bustling Venezuelan city into ghost town
Aug. 27, 2015 17:00 GMT
Distraught Colombians flee Venezuela as border dispute intensifies
Aug. 26, 2015 00:00 GMT
Shortages push some Venezuelans to queue overnight for food
Aug. 13, 2015 12:00 GMT
Headhunters woo low-cost Venezuela talent amid crisis
Aug. 05, 2015 00:00 GMT