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Significance
Venezuela’s economic adjustment, announced on August 17 by President Nicolas Maduro, has met with international scepticism. There is little confidence that the redenomination of the domestic currency will achieve intended aims of reducing hyperinflation or kick-starting economic reactivation.
Impacts
The government will be under pressure to explain the economic measures, specifically the pegging of the exchange rate to the petro.
The exodus of Venezuelans will accelerate despite efforts by neighbouring countries to prevent the outflow.
Maduro’s claim that US sanctions are to blame for the woeful state of the economy will maintain credibility among government supporters.
Keywords:
economy,
industry,
international relations,
politics,
social,
exchange rate,
fiscal,
government,
investment,
military,
oil,
opposition,
policy,
prices,
privatisation,
refugees,
wages,
Venezuela,
LA/C,
Ecuador,
United States
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2018
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