June 12, 2007

Chavez sells at black market rates!

Katy says: A curious note in today's El Universal. In last weekend's presidential TV Show, Chávez used the black market rate to convert from dollars to bolívars. Regarding the possible donation of an award he received from Lybia, his exact quote was: "One hundred thousand dollars. How many millions is that? 20 million bolívars, sorry, 400 million bolívars. With 400 million bolívars, how many "shanties" could I convert into decent houses? At least 15..."

Chávez's implicit exchange rate was 4,000 bolívars to the dollar, much closer to the black market rate of 4,200 than the official 2,150.

Seems like Chávez is benefitting from Misión Cadivi as well. As I always say, the bolívar is the only currency that comes with a 50% cash bonus every time you buy it.