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The cancellation of the currency auction shows another face of the Venezuelan crisis

The economic crisis in Venezuela has seen a new face after the Central Bank announced the cancellation of the currency auction because it could not liquidate the amounts, a decision that leaves in the air more than 17,000 natural and legal persons who invested in that system.

Caracas, Nov 24 (EFE) .- The economic crisis in Venezuela has seen a new face after the Central Bank announced the cancellation of the currency auction because it could not liquidate the amounts, a decision that leaves in the air more than 17,000 natural and legal persons who invested in that system.

In this bid, called on August 29 with announced allocation two days later, 22.73 million dollars, 18.1 million for 233 juridical persons and the rest for 16,955 natural persons at an exchange rate of 11,500 bolivars for dollar.

However, potential beneficiaries in this fifteenth auction of the system controlled by the state known as DICOM, did not receive the dollars or have been returned the bolivars that invested in this purchase and that, in almost three months, have been falling victim to the hyperinflation suffered by Venezuela today.

In the communiqué of the Central Bank (BCV) - which has been running since August without awarding foreign currency to private buyers - is attributed to the "illegal blockade imposed unjustifiably and arrogantly by the United States government on the people Venezuelan "the blame for the cancellation of this process.

It is assured in this letter that these sanctions that the Donald Trump government approved last August that prohibit Americans Negotiating with new debt and capital issued by the Government of Venezuela "distorts" the exchange system of the oil country.

The text also indicates that this situation produces, between other consequences, "the impossibility of liquidating in favor of the natural and legal persons that were adjudicated in the auction" a scenario that -according to this argument- will be aggravated, because at the beginning of this month the United States imposed new sanctions.

However, the Parliament, controlled by the opposition, assures that all the arguments of the Government of Nicolás Maduro they are false and that the State does have foreign currency, but prefers to pay them "to international banks."

The Chamber has denounced the bad management of foreign currency by the Government, and this week requested the BCV and the Executive to eliminate "the current exchange regime", in which the State has a monopoly, to allow oil investment to be incentivized and the escalation of the dollar on the black market.

The parliamentary opposition also criticized the interventions "in the name of socialism" of private enterprise, and the "politicization" and "widespread disinvestment" that would have led to the "destruction" of crude production and forced to import products "that in the past were surplus" such as gasoline and oil light.

Faced with this situation, traders attribute the high and unpayable prices of their products to the fact that they must resort to the illegal parallel currency market that has been triggered in an astronomical way.

In Venezuela both food and cleaning products and personal hygiene have reappeared on the shelves of many shops after having spent several months disappeared, although at such high prices that are unreachable for most citizens.

According to the renowned Ecoanalítica firm, from 2015 onwards it started in Venezuela an increase in the use of the parallel market, a way by which 54% of the total of private imports is financed.

All this is one more edge of the crisis in which It finds the country submerged, which in October went into hyperinflation when registering for the first time in its history a price index of more than 50% per month.

Economists They agree that it is no longer possible to achieve a balance of prices without making a structural change in the economic model, although the ruling party insists that the crisis in which it is Submerged the country is the exclusive fault of the "economic war" that will be carried out by businessmen and opponents to destabilize the Government.

The truth is that the sanctions US financial institutions could further impede the already complicated access of the South American country to new lines of international financing.

In the middle of this scenario, a The international association of the financial derivatives market recently said that Venezuela and state oil company PDVSA incurred a "default" by registering delays in the payment of some of the its bonds, which opens the way to claim insurance of debt default.

Difficulties seem to advance in the oil country despite Russia gave a modest accolade to the Government Chavista with the recent signing of a restructuring agreement of 3,000 million debt that will allow you to pay minimum amounts until 2026.

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