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Venezuela’s oil crisis destabilises Colombian black markets
Venezuela's Bolívar Currency Hits Record Low on Black Market - WSJ
CARACAS, Feb 25 Reuters - Venezuela's black market exchange rate weakened below bolivars per dollar on Tuesday, according to a widely referenced website DolarToday, despite the recent launch of a foreign exchange platform meant to reduce pressure on the black market. The bolivar has weakened 14 percent since the start of the year and 56 percent in the last 12 months, according to DolarToday, which publishes the black market rate based mostly on currency trades along the Colombian border. The government last week opened a "free-floating" currency exchange mechanism known as Simadi which currently sells dollars for bolivars. That is the weakest of a three-tiered exchange control system that also sells dollars at a preferential rate of 6. The launch of Simadi was meant to slow the depreciation of the bolivar on the black market and improve supplies of hard currency in order to limit nagging shortages of staple goods. Venezuelans attempting to use Simadi, particularly those involved in small-scale cash transactions, have complained of delays in obtaining greenbacks.
Venezuela black market: How Venezuela's black market has REPLACED banks
The Black Market also known as the underground market is the part of economic activity involving illegal dealings. Typically the buying and selling of merchandise or services illegally. Goods such as weapons and illegal drugs are inherently illegal, merchandise may also be stolen or may be otherwise legal goods sold illicitly to avoid tax payments or licensing requirements, such as cigarettes. Black markets develop when the state places restrictions on the production or provision of goods and
In the s, Venezuela was the fourth wealthiest country in the world. Today, Venezuela is poorer than it was prior to the s, its infrastructure is deteriorating, and its economy has been shrinking since the turn of the century. Hyperinflation out of control price increases has left the currency worthless and made it almost impossible for Venezuelans to afford basic necessities.