The conversion makes the dollar official national currency

The monetary reconversion that came into effect as of today, “will not put a brake on inflation, because the bolivar does not have a way to maintain its value, causing the dollar to become the currency of daily use.” This was stated by the economist Benjamin Tripier.

In his opinion, the Venezuelan government is not carrying out a monetary reform, they are just eliminating six zeroes from the currency. For a reconversion it is necessary to consider some “deeper variables to transform, and incorporate changes, to achieve a stabilization of the currency. With this (reconversion) there is no stabilization or brake on inflation. The bolívar does not gain confidence”, he sentenced.

For Tripier, citizens do not have confidence in the short or medium term in the new denomination of the bolivar because if they do so they will be losing. “Everything will be done is in dollars. Now our currency is the dollar. That an important recognition: allowing the dollar to circulate freely. “

The economist and president of the New Technology business firm, considers that “70 % of liquidity in transactions in Venezuela is made in dollars, and 30 % in bolivars.” But of that 30 %, only 10 %, that is 3 %, is made in bolivars and in cash. “The new cone is to satisfy that 3 %; while for the other 27 %, which is digital, which is done by debit card, the great advantage is the number of zeros that we are no longer going to write,” he explained.

However, he affirms that the reconversion will have a more profound impact because the new bolivar will become the minimum, it does not have cents and in his opinion the public institutions and everything that is associated with the tax unit will have to make adjustments. “It will be adjusted to 1 bolívar (…) I do not think that public institutions and everything associated with the tax unit remain at 0.02 bolívares.”

M. Rodríguez

Fuente: bancaynegocios