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Significance
Venezuela has welcomed OPEC's agreement to the first oil production cut since 2008 but this fillip was offset by a 67% fall in the black market value of the bolivar in November -- the steepest monthly fall to date. Amid triple-digit figure inflation, the Central Bank announced that new denomination bank notes will be released on December 15.
Impacts
The predictable collapse of the Vatican-endorsed dialogue process portends a renewed and possibly violent cycle of protest and conflict.
Absent structural reform and dramatic change in fiscal and monetary policy, a lift in oil prices will not alleviate economic turbulence.
Official optimism over a possible return to modest growth next year appears misplaced.
Keywords:
Venezuela,
LA/C,
Cuba,
Mercosur,
OPEC,
United States,
Vatican City,
economy,
industry,
politics,
exchange rate,
foreign investment,
government,
legislation,
oil,
opposition,
policy,
protest,
talks
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2016
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