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Today 10/29/2020, there was once again an increase in the price of the dollar with respect to the national currency of Venezuela the "Bolivar", placing the exchange rate at 1USD = 540,149.73 Bs.
This increase represents a rise of 35.37% compared to 09/29/2020 when the rate was 1USD = 399,007.54 Bs.
Venezuelans have become accustomed (unfortunately) to living with these changes in our economy, these increases have a direct impact on the prices of products and services, deteriorating our already impaired quality of life.
Perhaps for people from other countries this is not new news, but to give you a perspective of the level of devaluation of our national currency I wanted to make a comparison taking as a reference the prices of air tickets according to the information provided by Google Flights and the relative distances between cities.
Miami - New York
Air ticket rates at 29/10/2020
Source
Caracas - Maracaibo
The information on the price of these flights is not available in Google Flights, but in Venezuelan airports, the price of this air ticket is $230.
If we prorate the price per kilometer of travel, we would obtain:
Miami - New York
1,753 Km ---> $107
1Km ---> ?
? = $0.06/Km
Maracaibo - Caracas
518 Km ---> $230
1Km ---> ?
?= $0.44/Km
The price difference is an abysmal 733%.
Conclusion
Although the price of air tickets is not an official indicator for calculating inflation, this can effectively provide us with a clear perspective of Venezuela's economic weakness.
Traveling by land routes also involves considerable expense. Land passages have experienced an increase of more than 1000% as a result of the recent energy crisis as a result of gasoline shortages.
Venezuela, despite being an oil-producing country and having the largest oil industry in the entire South American continent and the largest proven oil reserves in the world, is currently unable to produce a single barrel of gasoline to supply the internal market, depending on fuel imports, which come from very distant countries like Iran.
This increases the great levels of corruption, since the international sale of gasoline is made with an excess price and recently, according to press information, Venezuela is making payments with gold bars, as a mechanism to evade the sanctions imposed by the administration of the United States.
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Wow, when you put the relative difference in cost of airfare next to one another, the >700% mark up rate it is startling. If you don’t mind my ignorance, in your mind, what would be the best route out of tho economically? I know that the mass adoption of crypto had been driven, in part, by shifting value of the local currency. Would you say this has been a positive force, has this adoption uptick stabilised daily transactions?
Thanks for your comment, friend @mynima.
The underlying problem is that the Venezuelan economy is distorted and far from any reality or pre-established model.
Here it does not matter which currency is taken for financial transactions. Even if crypto were adopted as the national currency, we would continue to experience overpricing.
Several Venezuelan economists have raised studies about the "inflation in dollars" that we are currently experiencing in my country.
I see, so it is an inability of of the overall financial system to currently handle the situation which I'm guessing has been compounded further by the pandemic and the overall global recession.
Yes, the recession product of the pandemic has negatively affected all the economies of the world with the exception of a couple of nations. Specific cases.
In Venezuela we are on the brink of total economic and social collapse.
Truly unsettled times we're in. Let's hope that the result of the US elections doesn't destabilize the world economy further (though I think it is likely it will, even just a little of uncertainty causes big waves these days).
Kind regards friend @juanmolina.
Living these difficult days in our country Venezuela, is not just anything, there is no doubt about the mettle of everyone to overcome these complex economic situations, which I am sure no country on the planet has had to live through. A good example is that of the airplane tickets as an indicator. We continue reading.
You are very right brother @lupafilotaxia.
Living in Venezuela is a test of steel.
Thanks for reading and commenting, I really appreciate it.
Greetings friend @juanmolina, without a doubt we Venezuelans have become emotionally strong, we have been able to endure all these sudden changes in the economy, which disarticulate our quality of life, the example you give is a reflection of what happens in different economic areas of our region, not to mention the health sector, let's hope that this situation will be overcome soon.
See you later, have an excellent weekend !
I read that article on Publish0x. :)
Interesting information that you share with us particularly for all Venezuelans, the dollar is an uncontrollable situation and that every day hits us harder, in reality our economic situation is not easy because the dollar is fundamental for the motorization of all economic activities in Venezuela being a notable example that you share with us on this occasion with the air tickets.
Truly, your article extraordinarily reflects our situation in the face of the serious problem of governance that all Venezuelans are experiencing despite the fact that our nation possesses so much wealth.
I think that for other people in the world to understand what the inflationary level of our economy means, nothing better than the example you gave, is very explicit for people in other countries, I think the conclusion of the case is that any currency or currency when you step on Venezuelan soil is devalued. Greetings my dear @juanmolina thanks for sharing
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