Venezuela’s collapse

Once one of the most prosperous and richest nations in Latin America, holder of the world’s largest crude oil reserves, Venezuela has been on a steep downward spiral over the past years. Following late President Hugo Chávez passing in 2013, his dauphin, bus driver Nicolas Maduro, has literally driven the country down on a highway to hell to its deepest political, social and economic crisis in its history. In his last move to fight the “economic war”, President Maduro announced a new economic plan on Friday 17 th August , a set of measures focused on fighting hyperinflation. Annual inflation is currently running at 100,000%, and it is forecast by the IMF to be of 1,000,000% - y es, you are reading correctly- one millio n percent this year. Yet, the desired effect of the announcements seems to be totally the opposite, as people have rushed back to the black market, dragging down the newborn currency. As of today, a Bolivar Soberano does worth 71.21 USD and 82.65 EUR, already down from the official exchange rate of 60BS per US dollar. Face to the massive rise in wages, and the lack of details on who/how will be the market supplied on official rate dollars, the hyperinflationary tensions are not likely to ease anytime soom .