Luis Arturo Bárcenas, senior economist and head of the staff of economists at the Venezuelan firm Ecoanalítica, He suggested during a radio interview that the Venezuelan government should open up more to dollarization in the country in order to control the exchange rate.
“What remains for the State or the Government is to try to force the issue of dollarization a bit”said.
According to a review of the Banking and Business portal, The economist explained that it is not a question of completely dollarizing the country, but of trying to give greater openness to that dollarization, which in his opinion helped “very much” in the years 2019 and 2020.
Likewise, Bárcenas pointed out that “inflation and the exchange rate are things that feed back” therefore the exchange rate was high because inflation was high, and It also reflected a lack of confidence that basically forced the regulator to buy exchange rate stability, that is to say, releasing an unprecedented amount of dollars to the street in a very specific way to control the exchange rate.
Finally, Barcenas indicated that other elements that could help the Venezuelan economy would be to give the Bank a greater opening so that it can mobilize resources expeditiously and “Allow him to even establish a currency exchange mechanism digitally.”
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