Current Business Exchange Rate
Currently, the economy of Venezuela has taken a free fall. I was in the city of San Cristobal in June. A 20 minute tax ride cost $3. The exchange rate was on the black market at a rate of 70 bolivares for 1 US Dollar. Now the exchange rate is 1000 bolivares for 1 US Dollar. So how much is a 20 minute taxi ride? 3000 Bolivares. That’s right. Still $3 dollars! I could not believe it. I immediately wrote about my adventures on the blog site onmyminddaily.com
Inflation has gone up 3000 percent, but the goods and services provided are still matching the equivalent of most USA products such as the example of MILK and SUGAR. Most Venezuelans make 500 Bolivares a month. They take the bus and they shop in small “windows” instead of supermarkets. The poor suffer and the rich are able to get by. Something strange happens with the middle class though; the prices of Venezuelan real estate have increased, even with the value of the bolivar in decline.
How can that be? This is because there is a REAL economy and a GOVERNMENT economy. The Real economy sets prices based on income on hand. Heading back to Venezuela, I stopped in the city of Caracas. Within 48 hours, I was mugged. The thief stole my wallet with over 100,000 bolivares inside. I immediately posted the story and told my experience at onmyminddaily.com
In order to unwind, I went to a massage parlor. The massage cost me $20,000 bolivares. Remember a typical worker in Venezuela only makes 500 Bolivares a month. FOUR YEARS of income on a 30 minute massage is what a middle class person would need to spend. The massage experience was similar to a Chinese massage in the states. I realized there were few articles on the black market schemes that Hugo Chavez’s protege was implementing. I posted the details of the current business exchange rate at onmyminddaily.com