28 November 2018 11:03
Updated November 28, 2018 23:17
Ten days after President Nicolás Maduro announced a salary increase of 1,800 sovereign bolivarians, ie August 29 this year, the auction of the exchange rate system of the Supplementary Exchange with Moving Markets (Dicom) dollar to 60.89 bolivarians and the price of the euro, which is today a measure of all government operations was 71.16 bolivarians.
The minimum monthly wage was $ 29.87 (or € 25.29) if the Dicom rate was taken into account.
On Wednesday, exactly three months later, the Venezuelan central bank published new results of the Dicom auction, which indicated a devaluation of the Bolivar against international currencies, with the dollar at 85.87 Bolivars and the Euro at BsS 96, 84
The exchange rate change was 41.02%, and the Bolivar weakened against the dollar to 29.09%, meaning that Maduro's salary dropped by almost 30% in relation to the dollar. the moment when the economic recovery program was announced.
Depreciation, taking into account the euro, is 25.89%.
For practical reasons, Venezuelans received a monthly minimum wage of $ 30 in September, taking Dicom as a reference, and at the end of November this salary dropped to $ 20.
Devaluation is even greater if the price of currencies on the parallel market is taken into account.
The problem of salary in Venezuela
Miguel Velard, economist, explained National website that the salaries in Venezuela have two aspects that should be analyzed: hyperinflation and loss of purchasing power.
"Everything is rising fast and the purchasing power of salary is decreasing, meaning that the real value of the sovereign bolivarians received by Venezuelan workers is getting smaller," he said.
For economists, however, the problem goes far beyond quoting official rates. Complex access to official currencies means that entrepreneurs need to look for alternatives to maintaining the country's imports and supply.
"For a long time, there are products whose price depends on an unofficial exchange rate, much more when we talk about products that are not produced here, and there is a need to import dollars, and alternatives need to be accessed because Dicom has a limit, he said.
Velarde explained that purchasing power is therefore a percentage lower because the rate has risen in the last three months.
"If it is assumed that the salary is governed by this type of change, it has been devalued, and the truth is that there is still much more in terms of the parallel exchange rate, and the products that Venezuelans have to obtain do not apply to the official rate."
– Central Bank of Venezuela (@BCV_ORG_VE) 28 November 2018