Skip to main content

Venezuela's currency plummets but President Maduro keeps talking coups

Simeon Tegel

February 14, 2015 15:06

Devaluation? What devaluation?

Bolivar to dollar, it's not as simple as it sounds. (Juan Barreto/AFP/Getty Images)

LIMA, Peru — You might think that devaluing a currency by more than two-thirds is a big deal.

Big enough, perhaps, that your president would mention it during a televised speech he gives on the same day.

Well, Venezuela’s controversial leader, Nicolas Maduro, thinks differently.

It was Thursday, just hours after his government revamped part of the country’s complex, three-tiered foreign exchange system — a move Reuters characterized as a 69 percent devaluation. But Maduro took to the airwaves to denounce yet another supposed coup attempt.

Speaking on the first anniversary of the start of anti-government protests, known as “12F” in Venezuela, Maduro claimed that “Washington” had been plotting to send jets to bomb his presidential palace.

Police even arrested 11 people, including Venezuelan soldiers and a retired air force general, over the allegations.

It’s hardly the first time the successor of the late Hugo Chavez has railed against supposed attempted ousters.

In fact, as Venezuela’s economy has collapsed over the last 18 months, Maduro has repeatedly claimed to have foiled coup attempts from the United States or the Venezuelan opposition — without ever providing evidence.

Just last week, he even named US Vice President Joe Biden as an instigator.

The US government dismisses the claims as “ludicrous” and says Caracas is using them to distract Venezuelans from the country’s real problems.

Venezuelans are enduring 64 percent inflation, widespread shortages of food, medicines and other goods and, according to the United Nations, the world’s second highest murder rate.

But here’s what happened with the exchange rate:

The country's multilayered foreign exchange system is hard to decipher.

This week officials overhauled the main fixed rate for ordinary Venezuelans, allowing it to float, with the market setting its value. As a result, 1 bolivar now buys just 0.58 of a penny (in other words, the rate is 170 bolivars to the dollar).

That’s the devaluation Reuters, and others, have been headlining.

But there are two other stronger rates, which will both remain pegged to the dollar at a fixed value. The strongest, available only to state businesses or to purchase vital imports, gets you nearly 16 US cents per bolivar.

Economists say the fixed rates overvalue Venezuela’s currency. Government critics say corrupt officials use the strongest one for personal transactions, while others accuse the wealthy of getting richer by gaming the system.
How some people are reacting:

El Nacional newspaper highlighted how the new exchange rate for ordinary folks was a staggering 1/27 of the government rate.

Opposition leader Henrique Capriles, who narrowly lost the presidential race to Maduro in 2013, was not slow in linking the currency reform with the president’s claims about plots to overthrow him:

View image on Twitter

“Here is today’s COUP against Venezuelan workers and their families,” the tweet reads. The photo compares the minimum wage, in dollars, in various Latin American nations.

Another Twitter user, @alejaguevara, who describes herself as a videographer “made in Venezuela,” waded into a debate over whether the devaluation broke records:

“The only [coup] attempt today is the dollar at #170Bs. The biggest #devaluation in the history of Venezuela.”

View image on Twitter

The photo says: “Airplane responsible for the [coup] attempt against the Venezuelan people.”

Venezuelan newspaper, TalCual, ridiculed Maduro’s claims with this Twitter poll:

View image on external website

The tweet reads: “TODAY’S POLL: Which of the 16 versions of coups denounced by Maduro strikes you as the most believable?”

Meanwhile, another Venezuelan, @COmentarista7, tweeted this picture of a line outside a supermarket:

View image on Twitter

It reads: “Shopping for food in #Venezuela is Mission Impossible, lines for kilometers, Sun, fainting, arguments, drama, hours lost.”

Popular posts from this blog


While "Flavor" is very subjective, and each country that grows mangoes is very nationalistic, these are the mango varieties that are the most sought after around the world because of sweetnesss (Brix) and demand.

The Chaunsa has a Brix rating in the 22 degree level which is unheard of!
Carabao claims to be the sweetest mango in the world and was able to register this in the Guiness book of world records.
Perhaps it is time for a GLOBAL taste test ???

In alphabetical order by Country....



Alphonso (mango)
From Wikipedia, the free encyclopedia

Alphonso (हापुस Haapoos in Marathi, હાફુસ in Gujarati, ಆಪೂಸ್ Aapoos in Kannada) is a mango cultivar that is considered by many[who?] to be one of the best in terms of sweetness, richness and flavor. 

It has considerable shelf life of a week after it is ripe making it exportable. 

It is also one of the most expensive kinds of mango and is grown mainly in Kokan region of western India.

 It is in season April through May and the fruit wei…

Mangoes date back 65 million years according to research ...

Experts at the Birbal Sahni Institute of Palaeobotany (BSIP) here have traced the origin of mango to the hills of Meghalaya, India from a 65 million year-old fossil of a mango leaf. 

The earlier fossil records of mango (Mangifera indica) from the Northeast and elsewhere were 25 to 30 million years old. The 'carbonized leaf fossil' from Damalgiri area of Meghalaya hills, believed to be a mango tree from the peninsular India, was found by Dr R. C. Mehrotra, senior scientist, BSIP and his colleagues. 

After careful analysis of the fossil of the mango leaf and leaves of modern plants, the BISP scientist found many of the fossil leaf characters to be similar to mangifera.

An extensive study of the anatomy and morphology of several modern-day species of the genus mangifera with the fossil samples had reinforced the concept that its centre of origin is Northeast India, from where it spread into neighbouring areas, says Dr. Mehrotra. 

The genus is believed to have disseminated into neighb…

DHL (INDIA) makes gifting mangoes as easy as 1-2-3-....

Gifting mangoes is now easy with DHL
Announcement / Corporate

 May 19, 2011, 14:04 IST

Come this summer pamper your loved ones abroad with a box of delicious mangoes through DHL’s Express Easy Mango service, a unique one-stop-shop and hassle-free service for gifting mangoes all across the world.

This unique service by DHL Express, the world’s leading express company, allows customers to send mangoes from India across the world to the following countries Belgium, Canada, Czech Republic, Germany, Greece, Hungary, Hong Kong, Italy, Luxemburg, Maldives, Netherlands, Norway, Oman, Qatar Singapore, Switzerland and Sweden.

Mangoes can be availed of free of cost by merely paying for the Air Express service. In addition, DHL Express assists customers with the necessary paperwork along with procurement of quality-grade Alphonso mangoes.

Commenting on the new service, Mr. R.S Subramanian, Country Head, DHL Express India said: “With the advent of the mango season, it is no wonder that DHL Express Ea…