Venezuela just undertook a massive currency devaluation, re-pegging the bolivar to a value of 6.3 per U.S. dollar from its previous official exchange rate of 4.3 bolivars per dollar.
The government also announced that it would shutter the Venezuelan currency exchange system known as SITME.
Given the currency devaluation underway in other economies around the world right now – perhaps most notably in Japan – a few are calling this Venezuela's foray into the global "currency war" between countries trying to devalue their currencies in order to increase export competitiveness.EVEN THOUGH THE CHAVZISTAS HAVE DOMESTIC REASON FOR THIS MOVE IT IS NEVERTHELESS PART OF THE BURGEONING CURRENCY WAR.
THE PACE WILL PICK UP IN THE COMING MONTHS, AND IT AIN;T GONNA BE PRETTY...
STAY TUNED...
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