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    Discussion in 'Pop in and say hello!' started by rafaelherrera, Dec 27, 2018.

    1. rafaelherrera

      rafaelherrera Member EngineeringClicks Expert

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      Exactly. Most Venezuelan workers receive a monthly salary below $ 10. Hardly enough to survive.

      There are people who are literally dying of hunger and it is not an exaggerated expression.
       
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    3. MSHOfficial

      MSHOfficial Well-Known Member EngineeringClicks Expert

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      I heard about Venezuela just today. I heard its not about the money at all. There are no products in the supermarkets that you can buy even with a lot of money. Is it true?

      Also how to do you use your money? In cash or card? Also if you earn in USD how can you change them if there is hyperinflation. The exchanges and banks must be ripped off by now for cash right?

      I know during inflation exchanging foreign currency for local one helps but if its hyperinflation I don’t know how far it would go.

      Are you guys allowed to move freely without a visa and earn money in other countries? Please excuse me for asking so many questions I am just interested.
       
    4. rafaelherrera

      rafaelherrera Member EngineeringClicks Expert

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      Hello do not worry. For me it's a great opportunity to be able to tell what happens in my country and be an informative focus. Even we find it hard to understand many things hahaha.

      I will answer the questions one by one:

      1._ There are no products in the supermarkets that you can buy even with a lot of money. Is it true?

      This is true, especially in the most remote cities of state capitals, towns or rural areas.

      The government destroyed almost all the industry of the country (expropriated it with the excuse that they were directed by the people and the state and, as there was no knowledge or intellectual capacity on the part of the new managers, they became unproductive)

      As there is almost no production, everything that is consumed is imported and Venezuela depends on its oil revenues (because the same government made the country dependent on oil revenues) and being in a time of low oil income, imports of products also they were reduced, generating a serious situation of shortage of products. There are supermarkets where ALL the shelves are empty.


      2._ Also how to do you use your money? In cash or card? Also if you earn in USD how can you change them if there is hyperinflation. The exchanges and banks must be ripped off by now for cash right?


      Interesting question.

      As there is hyperinflation, prices rise almost by hours and the money supply becomes insufficient, even though the Central Bank of Venezuela (another institution sequestrated at the service of the government party) prints tickets without backing in hard currency. And this causes the currency to lose value at comet speed and generates a shortage of cash.

      We have to use a lot of debit cards, but since the government has not made investments in almost any industry and productive sector of the country that it expropriated (the largest telecommunications industry also belongs to the state), telecommunications are a disaster and transactions with Cards are, most of the time, very slow. Or the system fails a lot.

      The interest rates of banks are very low due to a government policy. So, you're right, many banks practically gave away the money. A large part of the population survived on the basis of bank loans.

      Right now that changed a bit because the government forced the banks to establish the banking anchor in 60% of the assets.


      For those who have an income in USD there are some options to change them.

      - Via Paypal payments that I receive from abroad, I transfer that money to my buyer's Paypal account, that person transfers those dollars to his bank account abroad (Bank of America, for example). And that same person with a Venezuelan currency account makes a transfer in bolivars to my account in Venezuelan currency.

      - Someone with an account abroad (Bank of America, for example) transfers it in dollars to another person with a foreign account. And the same process is repeated with the transaction in Bolívares.

      The dollars in this way do not enter Venezuela. It is basically an exchange of dollars in accounts abroad and in parallel an exchange of bolivars in accounts in Venezuela.

      Since 2003, there has been a USD currency control by the government. All money that enters the country through the sale of oil is administered by the state.

      As there is no easy access to currencies (dollar or euro), there is a black market selling dollars and euros. And, in general, all transactions in dollars are guided by that black market indication.


      3._ I know during inflation exchanging foreign currency for local one helps but if its hyperinflation I don’t know how far it would go.

      Excellent observation We already have 1 year and 3 months in inflation (We are not yet the longest in the world or in Latin America, not even the highest in terms of percentage, but we are approaching at an accelerated pace). And this is serious, because as long as there are no changes in economic policy, hyperinflation will not stop. And for there to be changes in economic policy, a political change is necessary, that is, a new government. Because this group that has kidnapped all the institutions of the state, is only looking to stay in power without caring about the consequences.

      And, certainly as you point out, the cost of living even having an income in dollars has become expensive. And there are phenomena such as an ice cream is 3 times more expensive in dollars in Venezuela than buying it at Walmart in the USA, for example.

      It is an extremely complex situation.

      4._ Are you guys allowed to move freely without a visa and earn money in other countries?

      The migrant crisis became a real headache for the neighboring countries (many of them accomplices for many years of the petrodollars that Hugo Chávez gave away but that is another hahaha issue).

      However, Colombia, Peru, Chile, Ecuador, Argentina, Paraguay, even Brazil have been quite receptive to the growing wave of migrants. There were months of the year 2018 where approximately 5000 Venezuelans entered daily to Peru or Ecuador. These countries have even allowed the entry of Venezuelans without a passport, only with the Venezuelan identity card. And they do allow Venezuelans to work in those countries. They have even granted special permits to stay because of the obvious situation we are living.

      As in any migratory process, there is a percentage of the population with little academic preparation or skills to perform some kind of qualified work, and it is much more difficult for them to integrate in the countries where they migrate. And that's where the countries that receive Venezuelans are having headaches.

      Countries like Chile have benefited from the migration wave because they had a deficit of surgeons and many Venezuelans with the title of doctors came to occupy those vacancies and quickly integrated. Colombia has taken advantage of the Venezuelan engineers and has managed to grow its oil industry. Migration has brought benefits to other countries in this regard.
       

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