Street vendor holding bolivar notes, in Caracas, in February: currency has been cut by 14 zeros since 2008
Street vendor holding bolivar notes, in Caracas.| Photo: EFE/ MIGUEL GUTIERREZ

The bolivar, the currency of Venezuela, devalued 21% against the dollar in a week, according to the report released last Friday by the Central Bank of the country (BCV), which places the price of the American currency at 7.85 bolivars.

On Friday last week, the dollar closed at 6.18 bolivars on the official market, which represents a price increase of 27%, an unprecedented high in recent months and which has a direct impact on the prices of goods and services, calculated , mostly in US currency.

On the other hand, the dollar rate on the parallel market, which governs several transactions, rose 23%, from 6.95 bolivars to 8.56 this week, which devalued the local currency by 18%, according to the website Monitor Dólar Venezuela. , which offers the daily quote taking into account several markers.

The authorities had been making efforts to contain the official exchange rate and, consequently, inflation, implementing a strategy that consists of controlling the demand for dollars, reducing the issuance of bolivars, necessary to buy foreign currency, by reducing public spending and restriction of bank credits.