How bad are things in Venezuela under President Nicolas Maduro for the once prosperous South American nation? Well, the Caracas Stock Exchange is showing explosive growth in terms of price.
However, staggering inflation rates for the black market currerncy makes the Caracas Stock Market (valued at $2.57 trillion) only worth $3 billion based on the black-market rate.
The meltdown in Venezuela’s currency is deepening as a crippling dollar shortage and a threat of oil sanctions take their toll on the economy. The black-market rate for the bolivar traded weaker than 8,700 per dollar for the first time, according to dolartoday.com on Friday, compared with the official rate of around 10 and a more widely used alternative rate of 2,757. That’s creating an illusion for foreigners observing the country’s stock market, which appears to be valued at $2.57 trillion — bigger than Germany’s, France’s, India’s or Canada’s — but is worth only $3 billion based on the black-market rate.
And things are only going downhill for the once prosperous country, particularly with crude oil prices hovering around $43.48.
Here is President Nicolas Madura showing his people the true value of Venezuela after several years of his leadership.