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LatinNews Daily - 26 November 2020

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In brief: Venezuela takes measures in support of the bolívar

*Delcy Rodríguez, the vice president of Venezuela’s de facto government, has announced the adoption of various measures aimed at reverting the depreciation of the national currency, the bolívar soberano. The value of the bolívar has depreciated by a sharp 51% since the start of the month, with the official exchange rate controlled by the central bank (BCV) currently at Bs.782,025/US$1. The value of the bolívar in the local black market is even lower, with alternative exchange rates hovering around Bs.960,000/US$1. The depreciation has been attributed to the scarcity of US dollars in the domestic economy stemming from the international economic sanctions imposed on the de facto government led by Nicolás Maduro. In a series of tweets, Rodríguez announced that to reduce demand for dollars and promote the use of bolívares, the government will introduce a new tax on financial transactions carried out in foreign currency; “considerably” increase the current Bs100m limit on electronic banking transactions and withdrawals at cash points; and allow more entities to act as bureaux de change to give people “more options to exchange foreign currency for the national currency”.