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Economics Discuss Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit at the Political Forums; Well some are losing big time December 23, 2013, 11:28 A.M. ET. Venezuela Devalues Bolivar By 44%, Wiping Out Fordís ...

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Old 12-24-2013, 02:58 PM
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Default Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

Well some are losing big time

December 23, 2013, 11:28 A.M. ET.

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Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

By Shuli Ren

Venezuela devalued its currency bolivar by 44% today. Tourists can buy bolivars at 11.3 per dollar compared with the official 6.3 per dollar for most other transactions. Oil investments will also use the new exchange rate.

This move followed a 32% devaluation in February. Bolivar is losing value because of Venezuelaís dismal hard currency reserve, reports Bloomberg:

A decade of currency controls has made dollars increasingly scarce in the South American country, with foreign reserves falling to a nine-year low this month. The restricted supply of dollars to companies has led to shortages of imports ranging from tires to beef.

This devaluation essentially wipes out Ford MotorĎs (F) profits in Latin America, says Russ Dallen at BBO Financial Services:

Ford announced last week that it was expecting to lose $350 million because of this devaluation in Venezuela, basically wiping out all of its profits from the whole of Latin America. In short, Ford, like many international companies, has over $700 million trapped in bolivars that they have not been able to repatriate or exchange, as the Government will not give them the dollars and it is illegal to use the black market (which would also mean an even greater loss).

Ford wonít be the only victim. Dallen warns us to look for similar announcements from Toyota (TM), Clorox (CLX), Diageo (DEO), Mead Johnson (MJN), Revlon (REV), Mattel (MAT), and Tupperware (TUP).
Venezuela Devalues Bolivar By 44%, Wiping Out Ford’s LatAm Profit - Emerging Markets Daily - Barrons.com
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Old 03-03-2017, 02:45 AM
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Red face Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

Venezuela's foreign reserves down 66%...

Venezuela's foreign reserves, mostly in gold, down to $10.5B
March 2, 2017 -- The Central Bank of Venezuela, or BCV, said the country has $10.5 billion in foreign reserves, mostly in gold, which amounts to a 66 percent decrease since 2011.
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Venezuela has $7.2 billion in outstanding debt payments for the rest of 2017. In 2011, the South American country had about $30 billion in reserves and it had about $20 billion in 2015, BCV records show.


About $7.7 billion of Venezuela's remaining $10.5 billion in foreign reserves are gold. The South American country is facing an economic crisis.

Venezuela is facing a political and economic crisis in which basic goods such as food and medicine are in short supply, unavailable or unaffordable. The United Nation's Economic Commission for Latin America and the Caribbean predicts Venezuela's gross domestic product will decrease 4 percent in 2017, while the International Monetary Fund estimates inflation will increase 1,600 percent.

A survey found that nearly 75 percent of the population lost an average of at least 19 pounds in 2016 due to a lack of proper nutrition amid the economic crisis. About $7.7 billion of Venezuela's $10.5 billion in foreign reserves is made up of gold. Early last year, Venezuela sold more than 40 tons of gold -- about $1.7 billion -- to pay debts.

Venezuela's foreign reserves, mostly in gold, down to $10.5B - UPI.com
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Old 03-03-2017, 06:57 AM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

So, this s how socialism works huh?
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Old 03-03-2017, 08:20 AM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

What I don't understand is why the US is considered any more solvent than other currencies. We're broke, people. We currently print the money we use to buy larger presses so we can print more money.

The national debt is 20% higher than the GDP.

We borrow over half of what we spend. Much of that from ourselves. The rest comes from countries like China who lend us money so we can continue to buy their products. Our children and grandchildren are born owing north of $60,000 each in national debt.

Perhaps we should be paying attention to what's happening in other countries.
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Old 03-03-2017, 10:17 AM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

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Our children and grandchildren are born owing north of $60,000 each in national debt.
The lenders may have to accept lead as payment. I don't believe the sins and mistakes of dumbasses are passed down to the following generations.
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Old 03-03-2017, 10:29 AM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

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The lenders may have to accept lead as payment. I don't believe the sins and mistakes of dumbasses are passed down to the following generations.
But they are. That's the problem.
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Old 03-03-2017, 04:23 PM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

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Originally Posted by jimbo View Post
What I don't understand is why the US is considered any more solvent than other currencies. We're broke, people. We currently print the money we use to buy larger presses so we can print more money.

The national debt is 20% higher than the GDP.

We borrow over half of what we spend. Much of that from ourselves. The rest comes from countries like China who lend us money so we can continue to buy their products. Our children and grandchildren are born owing north of $60,000 each in national debt.

Perhaps we should be paying attention to what's happening in other countries.


Glad to hear another person state what I have been saying for a while..
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Old 03-03-2017, 04:37 PM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

i guess they named it after the hero, Simůn?
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Old 03-03-2017, 04:39 PM
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Default Re: Venezuela Devalues Bolivar By 44%, Wiping Out Fordís LatAm Profit

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Originally Posted by saltwn View Post
i guess they named it after the hero, Simůn?
Uh,,,Yes.

fact of the day for ya.

Venezuela



Venezuela

Venezuela, officially the Bolivarian Republic of Venezuela, is a federal republic located on the northern coast of South America. It is bordered by Colombia on the west, Brazil on the south, Guyana on the east, and the islands of Trinidad, and the Windwards to the north

Beautiful country, but no a good place to visit right now.
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