Mexico's Drug War
Syria Civil War
Christian Science Monitor
Economist Intelligence Unit
La Prensa (Panamá)
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.
Economy in tatters, Venezuela's Maduro tells citizens 'God will provide'
Jan. 22, 2015 22:00 GMT
Minor economic reforms are unveiled
Jan. 22, 2015 15:00 GMT
The Cost of Cheap Gas: A Big Loser
Jan. 22, 2015 00:00 GMT
Impact of low oil prices on Venezuela
Jan. 15, 2015 22:00 GMT
Capriles calls for opposition unity and peaceful protests
Jan. 15, 2015 00:00 GMT
Venezuela — Key Issues in 2015
Jan. 06, 2015 00:00 GMT
Recession, higher inflation confirmed
Jan. 02, 2015 00:00 GMT
Ramírez moved to UN post
Dec. 30, 2014 00:00 GMT
2014 in review: from crisis to crisis
Dec. 29, 2014 00:00 GMT
Maduro insists that petrol prices will not be raised
Dec. 16, 2014 00:00 GMT
The pros and cons Obama needs to consider before sanctioning Venezuela
Dec. 16, 2014 00:00 GMT
Falling Oil Prices Turn Up The Heat On Venezuela’s Maduro
Dec. 04, 2014 21:07 GMT
Some steps to legalise US dollar trade in black market
Dec. 03, 2014 00:00 GMT
Government announces new taxes on luxury goods
Nov. 20, 2014 00:00 GMT
Foreign minister visits oil allies
Nov. 13, 2014 00:00 GMT