They warn costs for changing the dollar as a reference currency
Experts affirm that the dollar is still the main international reference currency and that it is the currency in which Venezuelan crude is sold.
"Making a change in the referential currency from the dollar to the euro will generate an additional cost and therefore lower revenues to the country," according to the economist Sary Levy.
The expert explained that in the first place, "the dollar continues to be the main currency of commercial reference and international reserve."
He added that we must remember that our exportable product, oil, "is quoted in dollars and that our source of effective income for export is coincidentally the United States, which pays us in dollars."
"If we do not use the dollar, local imports that have primarily been handled in the dollar sphere will also be affected, which would bring losses in addition to the additional cost that would be incurred," he said.
On the other hand, the expert indicated that from the international point of view, "we know that there is free convertibility of the dollar / euro and at the rate set by the market, therefore this would not affect internationally at all".
He added that making this referential change from dollar to euro is feasible from a domestic perspective, but "it is not convenient because the costs would increase".
In the opinion of the also professor member of the National Academy of Economic Sciences, the decision of the Government to start this change of the reference currency from the dollar to the euro, "seems to be attributed to the axis of political ideological orientation that guides it".
He indicated that again, political ideology and not economic efficiency or social welfare are the guidelines for action, he said.
In addition, Levy added, the problem "is not only if currency transactions are denominated in dollars or euros, but there are currencies", and this seems to be the central point, the currency restriction, given the fall in production local oil company, he argued.
The economist emphasized that "as we know, oil prices are at high levels and attractive for exporting countries, but Venezuela can not take advantage of this reality because its production is in decline."
Foreign currency deficit.
For his part, the finance expert, Leonardo Buniak believes that the Venezuelan government "is facing a severe deficit in foreign currency and a problem of international monetary liquidity."
Referring to the government's proposal to change the reference currency of the dollar for the euro, Buniak said he plans to inject 2 billion euros in the exchange market and end Dicom operations with dollars, there is the question : "How much feasibility does this proposal made by the National Executive?".
"If you are going to quote euros where the euros will come from, that is, you have to buy them with dollars to be able to offer them in the currency market," he says.
The subject, insisted the specialist in finance, is that "those dollars to buy the 2 billion euros do not exist as there is basically no effective availability in dollars to cover contractual obligations."
Explains that "we are in a kind of reissue of what happened last year when it was announced that to avoid sanctions what would be done was to replace the dollar for a basket of currencies where the Yuan and the Rupee would be the most important, but that it also failed. "
About the sanctions
On the other hand, Buniak added, it is worth saying that "the financial and economic sanctions of the Donald Trump administration do not prohibit the use of the dollar for the purchase of medicines or food."
The financial expert explained that the sanctions they do is limit or prohibit financing, indebtedness or the issuance of debt over 90 days for PDVSA and 30 days when it is the national government.
However, he added that there are even the famous exceptions of the executive order where PDVSA and the government "could issue debt over 30 and 90 days, as long as it is proven that it is to buy medicines and food, exclusively."
The detail is, said Buniak, in that financing "must have the endorsement of a control body that is valid and legal as is the National Assembly in Venezuela."
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Analysis and Summary of the Publication
A few days ago the president of Venezuela made the decision to eliminate from the national market the currency in dollar this gender throughout the country and the few businessmen left in Venezuela a despair and the doubt that if this will be the end of trade in Venezuela and the first step for Venezuela to become the new ** CUBA **.
In Venezuela, the little trade that still remains active, which represents 30% of the national trade, is at this moment in uncertainty about what will happen to their businesses and employees, since everything they buy comes from outside and It is paid with dollars.
The government intends that entrepreneurs change from Dollars to Euros in a matter of a few weeks to activate trade in the country, what the government has not reported is that for employers to opt for the Euro they must make a request to change currency in the country which can take weeks to become effective, without forgetting that the cost of the euro is more expensive than the dollar and harder to get.
Since the country of Venezuela sells a barrel of oil in dollars which will result in sales falling by 46% in the coming months.
In reality, the Venezuelan government is already on the verge of madness because they can not get out of this economic problem and have bankrupted the country.
We can only wait a month for Venezuela to have no control over its economy and we depend on the government that regrettably controls everything.
For months now I have been informing the whole community of Steemit the different news that is generated in Venezuela, which during the last months have generated in the Venezuelan people insentidunble and despair, this crisis has led millions of Venezuelans to emigrate from the country.
In this opportunity, as you have already read, it focuses on a problem with the electrical system in the country that is attacking 65% of the Venezuelan territory generating power outages in several states of the country that have lasted up to 72 hours.
This problem has been manifested by the lack of maintenance in the power plants and the little investment in new electricity generating plants.
It has also caused thousands of electronic devices such as; refrigerators, televisions and blenders, are burned by the current downturns, this in turn generates a millionaire loss for these families since in Venezuela a refrigerator has a value of $ 500 dollars, taking into account that the minimum salary of a Venezuelan is of $ 20 dollars, which is not enough for anything.
It is crazy what happens in Venezuela every day, yesterday the president of Venezuela announces to the whole world that the dollar will no longer be accepted in the Venezuelan economy and that the Venezuelan who has dollars can be captured and sentenced to prison.
This is what Venezuela needed to deepen more in poverty and poverty. We can no longer receive dollars from our foreigners that our relatives send us to survive in a country that no longer achieves anything. Very high cost, where the Venezuelan can not buy a kilo of cheese because he should save a month of work to buy it.
Regrettably, President Nicolás Maduro is starving the Venezuelan people, where they no longer receive food or medicine for the sick, where children and adults die every day for lack of food or medicine, where crime has increased by 87% in less than one year. year, where the light goes like this every day, where there is no gas or gas to cook.
Where millions of Venezuelans are emigrating in search of a better future, where to obtain their passport must charge at least 5 months of minimum wage.
We are living a situation that has no comparison, now they want us to use the euro as a reference currency, when we all know that we will not have advice for that currency, since the government controls the entire national market and where the president places it. In prison, he does not agree with him.
Thank you very much for reading my POST I hope you liked it and come back at the next opportunity.
This Publication is a translation of the Spanish into the English language of the website El Universal, The objective of making these translations is to bring the entire Steemit Community the best content found in the Spanish language.
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