CARACAS: Venezuela devalued its currency by almost 35 percent on Monday to bring it into line with the exchange rate of the dollar on the black market.
The exchange rate is now fixed at 3,200 bolivars to the dollar, almost matching the 3,118.62 offered on the dolartoday.com site that acts as the reference for the black market.
Exchanges will now be provided by a technological platform operated by a private firm called Interbanex, which said it would operate a “supply and demand” exchange.
The announcement represents a huge about-turn by the socialist regime of Nicolas Maduro, which has imposed strict currency controls since 2003, all the while monopolizing foreign reserves.
That forced individuals and businesses to turn to the black market to get dollars — a necessity in a country wracked by an economic crisis marked by hyperinflation and shortages of basic necessities.
However, the black market rate for the dollar was 30 times the official rate, as the government artificially overvalued the bolivar.
Specialists have urged Maduro to abandon the policy of controlling exchange rates in order to combat the country’s economic crisis and inflation, which the International Monetary Fund says will reach 10 million percent this year.
The move comes at a time when Venezuela is also mired in a political crisis after parliament head Juan Guaido declared himself “acting president” last week.
Guaido was recognized as the legitimate interim president by a number of countries, including the United States, which has slapped tough economic sanctions on the Maduro regime.
Maduro has accused the US and Guaido of attempting to engineer a coup d’etat.
Consultant Asdrubal Oliveros, director of Ecoanalitica, says currency move has come too late.
“With the dynamic the country is in, this isn’t viable and it will make things worse,” he said.
In August, Maduro launched a series of economic reforms including devaluing the bolivar by 96 percent, but since then it has lost another 98 percent of its value.
Venezuela devalues currency to align it with black market
Venezuela devalues currency to align it with black market
- The announcement represents a huge about-turn by the socialist regime of Nicolas Maduro, which has imposed strict currency controls since 2003
- Opposition leader Juan Guaido has been recognized as the legitimate interim president by a number of countries, including the United States
Stc Group issues US dollar-denominated sukuk with a total value of $2bn
RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.
The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.
It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.
The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy.
This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.
This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position.
It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.
