Sunday, June 16, 2013

“Dollar Nymphomania” could be part of the economic war unleashed by the fascist right

President Nicolas Maduro declared on June 13 that “there is a nymphomania for dollars in many sectors. It’s impossible to satisfy them if they are looking for dollars for the dollars themselves.” He added that this was part of the economic war Venezuela is fighting against the “fascist right.” 


There is, in fact, in Venezuela an infinite demand of dollars for importing goods and for safeguarding savings in the face of high inflation. Melinda Sánchez Montañés and David Smilde argue that an “important cause of the current economic situation is the distortion of the currency system. Imposed in 2003, exchange control has rendered a progressive overvaluation of the Bolivar, which has led to a wave of imports targeted for consumption rather than investment, as well as capital flight.”   

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