Venezuelan economist: 'Hyperinflation is a powerful imperialist weapon'

http://www.greenleft.org.au/content/venezuela-economist-hyperinflation-powerful-imperialist-weapon
Date Written:  2019-05-03
Publisher:  Green Left Weekly
Year Published:  2019
Resource Type:  Article
Cx Number:  CX23689

Interview with Venezuelan an economist about how hyperinflation is being used as a weapon against the country.

Abstract: 
--

Excerpt:

Q Hyperinflation is a grave problem in Venezuela, but its causes are less clear. How do you explain it?

A The determinant cause of hyperinflation in Venezuela is the political manipulation by third parties of the exchange rate between the bolívar [Bs, Venezuela’s local currency] and the US dollar. That is why we have said this is induced hyperinflation.

Since 2006, certain websites have set a supposed value of the bolívar that has no bearing on its real value. Economic agents have in turn used these exchange rates as reference points when calculating costs and prices....

Q The opposition and media say that most of the sanctions imposed on Venezuela have been targeted at individuals -- at least until this year -- and that therefore they have not impacted on the country’s economic situation. What can you tell us about the impact of the sanctions?

A There have been specific sanctions on state officials as well as unilateral and illegal coercive measures that have impacted not on the economy but on the entire population of Venezuela.
For example, in August 2017 United States President Donald Trump signed a decree in which he prohibited the Venezuelan government and PDVSA, the state oil company that generates 98% of the country’s income, from being able to acquire new debts.