Venezuela has been in a recession for eight years, has had four years of hyperinflation, and has seen its currency plummet. Despite all odds, the battered bolvar has managed to stabilize since October.
It’s thanks to a US$2.2 billion public investment aimed at lowering inflation in the South American country. Inflation reached 686 percent last year, the most in the world.
However, compared to 130,000 percent in 2018, 9,585 percent in 2019, and 3,000 percent in 2020, this was a huge improvement. Venezuela’s central bank put US$2.2 billion into the domestic market in 2021-2022, according to consultancy Aristimuo Herrera & Associates.
The US dollar was formerly scarce and highly valued, swapping hands on the black market for substantially more than the official exchange rate, despite being banned by the government for 15 years.
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